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Under GFAL: GSIS offers loan transfer to all members up to 500K with top-up facility

Date Posted: August 28, 2019

State pension fund Government Service Insurance System (GSIS) today announced that it has introduced a new feature in its latest loan transfer and consolidation program called the GSIS Financial Assistance Program (GFAL).

Under GFAL, GSIS members may transfer their loan of up to Php500,000, to the pension fund from lending institutions, such as government banks and cooperatives, that are duly accredited by their agencies.

The loan, which has a lower interest rate of six percent per annum and longer repayment period of six years, will be directly paid to the lending institutions.

“However, should a member’s total loan with the lending institution be below Php500,000, the balance may be applied for as Top-Up Loan, with the proceeds directly payable to the borrowers through check,” GSIS Chairman and concurrent Officer in Charge Rolando Ledesma Macasaet said.

“We introduced the Top-Up Loan to help GFAL borrowers augment their funds to defray for their other needs. Instead of running to private lenders for a fresh loan, members are instead advised to optimize their GFAL and take advantage of the lower rate and longer payment terms,” Macasaet added.

GFAL, which was initially offered to public school teachers and employees of the Department of Education (DepEd) last May 2018, aims to improve their financial capacity and help them refinance their outstanding loans with lending institutions.

In July 2019, GSIS expanded its GFAL coverage to non-DepEd agencies and local government units due to their strong clamor. “We heeded their demand recognizing that all GSIS members should enjoy the same privileges for the sake of equality and fairness.”

The pension fund chief also pointed out that GFAL is in response to the call of President Rodrigo Duterte to help improve the financial situation of teachers and other government employees who fall prey to money lending schemes, such as ‘5-6’, which are often tied with hefty double digit interest rates.

Agencies should first enter into a memorandum of agreement with GSIS to enable their employees to avail themselves of GFAL. Qualified to apply for the loan program are active regular or special members who have permanent employment status, have no pending administrative case or criminal charge, and are not on leave without pay.

They should also have at least three years of periods with paid premiums, have no due and demandable loan account with GSIS, and have a take-home pay not lower than Php5,000, which is required under the General Appropriations Act after all monthly obligations have been deducted.

Borrowers may apply for GFAL and Top-Up Loan only once.

Interested parties may visit the GSIS website,, or Facebook account,; email; or call the GSIS Contact Center at 847-4747 if in Metro Manila or 1-800-8-847-4747 (for Globe [free with minimum Php8.00 load] and TM subscribers) or 1-800-10-847-4747 [for Smart, Sun, and Talk ’N Text subscribers; Php8.00/call]).