MANILA -- The Government Service Insurance System (GSIS) on Tuesday will start accepting applications for the GSIS Financial Assistance Loan (GFAL) program for personnel of the Department of Education (DepEd).
Under the program, GSIS will lend a maximum amount of PHP500,000 to DepEd borrowers to pay the outstanding balance of their loan from accredited private lending institutions.
Instead of offering the GFAL to DepEd personnel in selected cities and municipalities on a pilot run, we decided to open it to all teachers and teaching personnel nationwide because we want more teachers to benefit from lower interest rate and better terms of payment from GSIS, president and general manager of GSIS, Jesus Clint Aranas, said in a news release issued Friday.
Reduced interest rates and smaller amortization spell savings and higher disposable take home pay for our members. This will definitely lighten their load, Aranas said.
Under GFAL, qualified borrowers may loan up to PHP500,000 provided their take home pay is not less than PHP5,000 after deduction of monthly obligations. If they are indebted to more than one private lender, they may consolidate their loans and transfer the total amount to GSIS. The proceeds of the loan will be paid directly by GSIS to the private lending institutions.
This loan program is a balance transfer and debt-consolidation facility in one. It allows the members to take a second look at their spending habits -- if they are heavy borrowers, they might be spending beyond their means, Aranas said. The best thing about GFAL is that the borrowers will go through loan evaluation and counseling process and are required to attend the GSIS Financial Literacy Seminar before taking out the loan to adopt good money management practices.
All DepEd personnel may qualify for the loan if they are active regular GSIS members with permanent status and paid premium for the past three years; not on leave without pay; have an outstanding loan from DepEd-accredited lending institutions; and have no due and demandable loan account with GSIS.
The borrower should also have no pending administrative case or criminal charge except for those who were sued by an accredited lending institution for non-payment of loan obligations as a result of the prioritization of GSIS and Home Development Mutual Fund (Pag-IBIG) loan payments under Department Order No. 38, s. 2017 on July 31 last year. These members are qualified to avail of GFAL.
The interest rate of GFAL is 6 percent per annum computed in advance and payable in monthly installments for six years. Payments will be automatically deducted from the borrower's salary. The loan has no processing fee. Availing of the loan is not compulsory but voluntary on the part of the members.
To apply, DepEd personnel need to submit a properly filled-up application form, which can also be downloaded from the GSIS website (http://www.gsis.gov.ph/downloads/forms/20180504-FORMS-GFAL_Application.pdf); GSIS-prescribed statement of account (http://www.gsis.gov.ph/downloads/forms/20180504-FORMS-GFAL_SOA.pdf), with clear photocopy of the ID of the authorized representative of the lending firm who will claim the check from the GSIS and contact details; borrower loan agreement, loan voucher or other certified documents indicating the term of loan, interest rate, monthly amortization and due date of first loan amortization; and pay slips for the past three months, certified as true copy by the agency authorized officer. Only complete submissions will be accepted and processed by the GSIS.
Interested parties who have inquiries may visit the GSIS website, www.gsis.gov.ph, or Facebook account, @gsis.ph; email firstname.lastname@example.org; or call the GSIS Contact Center at 847-4747 or 1-800-8-847-4747 (for Globe [free with minimum PHP8 load] and TM subscribers) or 1-800-10-847-4747 (for Smart, Sun, and Talk 'N Text subscribers, PHP8 per call). (GSIS PR)
Source: Philippine News Agency