GSIS extends deadline of financial assistance loan application for DepEd employees

MANILA, Philippines — The Government Service Insurance System (GSIS) announced on Thursday it has extended the deadline in applying GSIS Financial Assistance Loan (GFAL) until July 26, 2020 for employees of the Department of Education (DepEd). “More than half of GSIS membership are DepEd personnel. So they are given more time to take advantage of GFAL benefits until July 2020 instead of the earlier announced December 2019 deadline,” GSIS acting president and general manager Rolando Ledesma Macasaet said in a statement. GFAL is a program that enables members to consolidate and transfer to GSIS their outstanding loan balance from lending institutions that charge high interests. It’s low interest and longer payment term yields higher take-home pay for GSIS members and protects their retirement benefits, according to Macasaet, also the chairman of the social insurance institution. He explained the program was established in response to President Rodrigo Duterte’s call to end to high-interest money lending schemes that leave government workers overwhelmed with debts. The loan facility was first offered to DepEd personnel on May 15, 2018 and later opened to other employees of other government agencies on July 29, 2019. “We reiterate that the deadline for application for GFAL for the rest of GSIS members is also July 26, 2020,” said Macasaet. According to GSIS, the maximum loan under GFAL is P500,000, with a six-percent interest rate per annum and a six-year payment term through salary deduction. “If the amount of loan balance transferred to GSIS is lower than P500,000, borrowers may apply for the remaining credit as Top-Up Loan for their other needs,” read a webpage from the GSIS website. “GSIS pays GFAL’s proceeds directly to lenders, while Top-Up loan proceeds are released to members,” it added. Interested applicants from DepEd must be permanent government employees with an outstanding loan from lending institutions, government banks, or cooperatives accredited or recognized by their agency. They should also have at least three years of periods with paid premiums and have no due and demandable loan account with GSIS, according to the insurance system. Likewise, they should also not be on leave without pay at the time of application, have a take-home pay of not lower than P5,000 after deduction of monthly obligations, and should have no pending administrative or criminal charges. All GSIS offices are open for GFAL transactions every Saturday, including the conduct of a financial literacy seminar, which borrowers are required to attend prior to loan processing and approval.