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GSIS extends housing loan condonation until end-2025

Louise Maureen Simeon - The Philippine Star
GSIS extends housing loan condonation until end-2025
GSIS said that it would adhere to COA’s recommendations to improve its processes.
GSIS facebook page

MANILA, Philippines — State-run pension fund Government Service Insurance System (GSIS) has extended its condonation and restructuring program for its borrowers who availed of housing loans.

In a statement, GSIS said the condonation, which was opened in December last year, has been extended until end-2025 in a bid to help borrowers in their housing payments.

The condonation program is one of three components under the pension fund’s umbrella program called Pabahay para sa Bagong Bayani na Manggagawa ng Pamahalaan.

The program targets to contribute to the government’s overall goal of addressing the housing backlog in the country.

Borrowers, who are paying off their housing loans with GSIS and are having a hard time with their amortizations, can restructure their payments.

This includes condonation of penalties and surcharges and installment payment of up to 10 years to reduce the amortization.

For borrowers who wish to pay in full, GSIS will remove all unpaid penalties and surcharges and will give a 50 percent discount in interest payments.

Members can also settle their arrears first or those obligations that have not received payment by its due date.

GSIS borrowers can pay via four methods including payroll deductions, monthly cash or manager’s checks, post-dated checks, or through the GSIS Housing Online Payment.

“We continually seek to enhance our loan products, helping borrowers make responsible payments while maintaining a healthy pension fund,” GSIS said.

GSIS total loan receivables have been cut by 38.6 percent to P45.58 billion in 2022 from the P74.25 billion in 2016.

This has been slashed by P3.57 billion to P42.01 billion as of end-April this year.

GSIS earlier attributed the reduction in outstanding loans to measures that the GSIS has been instituting over the years.

These include various condonation and restructuring programs designed to alleviate borrower debts. Another initiative also enabled inactive members to repay loans over a three-year period at a 10 percent annual interest rate.

GSIS

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