By Leilanie G. Adriano
Staff Reporter
LAOAG CITY—Permanent gov’t employees with outstanding
loan obligations with lending institutions may wish to avail of a one-time loan
balance-transfer and debt-consolidation program of the state pension fund
Government Service Insurance System (GSIS).
In a press conference held at a hotel in this city, Lord
A. Bico, GSIS Laoag Branch manager reported that at least nine local government
units and one national government agency in the provinces of Ilocos Norte and
Ilocos Sur have already signed a memorandum of agreement to enable their
employees to enjoy its benefits of lower interest rate of 6% per annum and
longer repayment term of six years.
These are the towns of Pagudpud, Pasuquin, Dingras,
Vintar, and Burgos in Ilocos Norte and the towns of San Emilio, Banayoyo,
Lidlidda, Sta. Catalina in Ilocos Sur, including the Department of Agrarian
Reform.
The GSIS financial assistance loan (GFAL) 1 was
originally offered to teaching and non-teaching personnel of the Department of
Education and this was later on extended to the other GSIS members effective
July 27, 2019.
Mr. Bico explained that the expanded GFAL program, named
GFAL 2, seeks to ease the burden of other government personnel and help enhance
the pension fund’s collection
efficiency.
Under GFAL 2, borrowers may transfer their loan balances
to GSIS from lending institutions.
A qualified applicant may avail of maximum loan amount of
PHP500,000, with an interest rate of only 6 percent per annum.
“With a lower interest rate compared to other lending
institutions, this will ultimately result in higher net take-home pay and
protect their future retirement benefit,” said Salvacion P. Mate, GSIS senior vice
president for Luzon group.
“GFAL is in response to the call of President Duterte for
us to get rid of loan sharks by helping government employees settle their debts
with double-digit interest rates,” Ms. Mate added.
To reach out to more Ilocanos, the GSIS conducted a
stakeholders’ forum on October 4, 2019 to explain the different benefits of the
program.
This year, GFAL’s features were further improved by introducing a “top-up” option,
which will enable borrowers to maximize the loanable amount of PHP500,000.
GFAL borrowers whose outstanding loans with lending
institutions do not exceed PHP500,000 may apply for the remaining available
credit as “top-up loan”.
Unlike the GFAL proceeds, which GSIS pays directly to
lending institutions, the “top-up loan” proceeds will be released to the member
for a minimum of five days once applicants fully comply with the requirements.
To qualify for GFAL, applicants must be permanent
government employees with outstanding loan from lending institutions,
government banks, or cooperatives accredited or recognized by their agency;
have at least three years of periods with paid premiums; and have no due and
demandable loan account with GSIS.
In addition, they should not be on leave without pay at
the time of application; have a net take-home pay of not lower than P5,000
after deduction of monthly obligations; and have no pending administrative case
or criminal charge.
Of the total PHP70 billion budget for this program
nationwide, Ilocos Norte has been allotted PHP1.1 billion.
So far, more than 200 active GSIS members in the province
have availed of the program.
With this, the GSIS is calling on all qualified
government workers to take advantage of GFAL and make sure to attend a
financial literacy seminar, which is a requirement prior to loan processing.
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