GSIS waives P1.6 billion penalties for housing loan borrowers

MANILA, Philippines — State-run pension fund Government Service Insurance System (GSIS) has waived P1.6 billion in penalties of housing borrowers having difficulties settling their loan obligations.

In a statement, the pension fund for government workers and retirees said it has processed debt relief for 1,143 housing loan borrowers as of the first quarter of the year.

Under the Housing Accounts Restructuring and Condonation Program (HARCP), GSIS waived P1.6 billion in penalties and provided P121 million in interest discounts for homeowners with overdue payments.

GSIS president and general manager Wick Veloso said the program aims to lessen the pressures from other financial obligations of homeowner-borrowers.

The HARCP allows borrowers to lower their monthly payments by restructuring their loans, extending their repayment periods up to 10 years and securing a 50 percent discount on the remaining interest if they pay their debt in full.

Borrowers can also pay off their arrears to bring their accounts up to date.

Four payment options are available for borrowers including payroll deductions, monthly cash or manager’s checks, post-dated checks or through the GSIS Housing Online Payment system.

The condonation program is under the flagship housing program of the administration that involves the construction of high-rise residential buildings for state workers.

The pension fund is likewise offering the Lease with Option to Buy program where GSIS leases more than 13,000 available housing units nationwide with the lessee given the priority to buy the unit with no down payment.