MANILA, Philippines — The Government Service Insurance System (GSIS) has unveiled a new policy designed to make penalty computations on delinquent loans more borrower-friendly, offering members greater flexibility and a clearer pathway to settle overdue accounts.
Under the revised guidelines, penalties on unpaid loan amortizations will now be calculated using simple interest based on the unpaid amortizations, making payment obligations easier to understand and manage.
“We want to help our members maintain good standing on their loans, particularly during financial hardships,” GSIS president and general manager Wick Veloso said. “This simpler calculation method gives them a clearer path forward.”
The new policy allows members to reinstate their accounts by paying all overdue amortizations, including the corresponding penalty charges.
For those unable to make full payments immediately, GSIS will accept partial payments on accounts with arrears of up to six months.
This adjustment aims to help borrowers restore their credit standing and regain eligibility for future GSIS loan programs, fostering long-term financial recovery.
The policy will apply to all outstanding loan balances of active and inactive members, excluding fully paid service loans. GSIS is currently finalizing the detailed guidelines.
“This development is part of GSIS’s ongoing commitment to promote financial inclusivity and ease for its members, ensuring that ‘Ginhawa for All’ remains at the heart of our services,” Veloso added.
The policy is expected to provide much-needed relief to GSIS members, encouraging timely repayments while reducing the financial strain of settling overdue accounts.