GSIS extends deadline for loan restructuring

MANILA, Philippines — State pension fund Government Service Insurance System (GSIS) has extended the deadline for its loan restructuring program to give inactive members more time to settle their outstanding obligations.

In a statement, GSIS chairman and acting president Rolando Macasaet said the deadline for the pension fund’s program for restructuring and repayment of debts (PRRD) had been extended until Sept. 30 this year.

“GSIS is intensifying its efforts to recover and collect outstanding and non-moving loan accounts through the program. It likewise addresses the clamor of separated GSIS members and pensioners for a little more time to restructure their loans and pay the remaining balance through installment,” Macasaet said.

“We urge inactive GSIS members to apply for PRRD so they can pay their remaining balance free of penalties on an installment basis at 10 percent interest per annum only,” he said.

Launched in 2018, the PRRD program is open to former GSIS members who have loans that were left unsettled after their separation from government service.

Under the program, all unpaid penalties on the outstanding loan balance of a member will be condoned. The remaining balance will be restructured with an interest rate of 10 percent per annum.

Covered under the program include those with unsettled service loans such as salary loans, emergency loan assistance, member’s cash advance, conso-loan,

Home Emergency Loan Program; Study Now, Pay later and Fly Pal; education assistance loan, policy loan and GSIS financial assistance loan to Department of Education personnel.

The state pension fund also extended the deadline for the GSIS Financial Assistance Loan Program (GFAL) until July 26 this year.

GFAL allows GSIS members to consolidate and transfer their existing loan balances amounting up to P500,000 from other lending institutions to the state pension fund.

If a member’s total loan is below P500,000, the balance may be applied for as a top-up loan, with the proceeds directly payable to the borrowers through check.

The loan carries an interest rate of six percent per annum, payable in monthly installments for six years, and will be paid directly to the lending institutions.