Wednesday, November 20, 2019

GSIS loan transfer is now available to Iligan City Government employees

(Wednesday23rd day of October 2019)

 

Iligan City—The Iligan City Government employees can now transfer their loans of up to PhP500,000 from accredited lending institutions to the Government Service Insurance System (GSIS) through its expanding loan program dubbed GSIS Financial Assistance Loan (GFAL) II/Top Up programto all its members in government agencies.

This was announced by GSIS-Iligan Division Chief on Frontline Services Ivory N. Paunte on Financial Literacy Seminar and Orientation held at Sangguniang Panlungsod Session Hall on Wednesday, October 23,2019. GFAL program is GSIS’s response to the call of President Rodrigo Duterte to help free government employees from the clutches of lending institutions who practice schemes such as ‘5-6,’ which are often tied with hefty double-digit interest rates. It is the balance-transfer and debt-consolidation facility of GSIS that aims to help active GSIS members settle their outstanding loan obligations with lending institutions.

“The intention of GFAL is to assist our members to settle their loans with private institutions. But the difference for GFAL II, we will also assist our members with their loans from the government banks and the like,” Paunte said. Under GFAL II, borrowers may transfer their loan balances to GSIS from lending institutions. “A maximum loan amount of P500,000, with an interest rate of only 6 % per annum and longer repayment period of six years, payments will be automatically deducted from the borrower’s salary which is certainly advantageous to our members. This will ultimately result in higher net take-home pay and protect their future retirement benefit,” Paunte explained. Borrowers may apply for GFAL and Top-Up Loan only once. GFAL borrowers whose outstanding loans with lending institutions do not exceed P500,000 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.

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; have no due and demandable loan account with GSIS; have no pending administrative case or criminal charge and are not on leave without pay. They should also 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. Paunte added that the program will also require borrowers to undergo a financial literacy seminar to adopt good money management practices and the said program has no processing fee and the availment is not compulsory but voluntary on the part of the members.

 

Maricris Jumalon Tumimbang / CIO

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