ZAMBOANGA CITY, Philippines — The Government Service Insurance System will offer between P100 billion to P200 billion in loans next year under the GSIS Financial Assistance Program (GFAL), according to GSIS chairman and acting president Rolando Macasaet.
Macasaet made the announcement after signing a memorandum of understanding with local government employees in this city, which was attended by GSIS managers across the country.
He said P35 billion had been released and 90,000 state workers availed themselves of the loan, which offers lower interest and longer repayment period.
Macasaet stressed the need for a bigger loan facility to protect government employees, particularly teachers, from loan sharks.
He said interest rates offered by loan sharks are “ridiculous.”
Under the top-up loan scheme, the GSIS will settle the outstanding loan of government employees from accredited lending firms of up to P500,000.
“If a teacher for example has an unpaid loans of P200,000... the GSIS will pay it in full and his debt will be transferred to the GSIS... Since he is entitled to a half a million pesos... we will release the remaining P300,000 to complete the loan package,” Macasaet said.
“This will save thousands of government employees from skimming lending firms and loan sharks,” he said.