GSIS unveils new housing loan scheme

Overseas Filipino workers (OFWs) can now serve as co-makers when a government employee applies for a loan with the Government Service Insurance System, GSIS president Winston Garcia said yesterday.

This means that a GSIS member with a relative working abroad can apply for a bigger housing loan if the relative is willing to serve as a co-maker. A co-maker is a person who formally accepts responsibility for a loan made to another if the latter fails to pay.

Garcia said government workers can now apply for loans to renovate their house, aside from getting a loan to buy or build a house on a lot they own or buy a house and lot.

GSIS members may also transfer an existing mortgage from a private bank to the GSIS to avail themselves of a lower interest rate of eight to 12 percent per annum.

Aside from broadening the scope of the loans, Garcia also removed the P500,000 ceiling on the amount a GSIS member can borrow. The maximum loanable amount is now based on the member’s paying capacity or by the value of his collateral.

Garcia also expanded the definition of GSIS members’ paying capacity to cover income from other sources aside from their regular government salary, as well as the income of the spouse.

Meanwhile, a man who claimed to be a "rallyist for hire" filed an estafa case against one of Garcia’s most vocal critics.

Ferdinand Gaite, president of the militant Confederation for Unity, Recognition and Advancement of Government Employees (Courage), was sued by Pacifico Canatoy for failing to pay him P3,000 for participating in the group’s protest actions against Garcia last month.

Canatoy said he was desperate for a source of income after losing his job as a volunteer mechanic at the Land Transportation Office’s emission testing section when he fell ill.

He approached Gaite to ask for financial assistance, and claimed Gaite promised to pay him P500 per day provided he joined demonstrations held by Courage at the GSIS compound in Pasay City.