GSIS extends loan program until end-December 2021 | Inquirer News

GSIS extends loan program until end-December 2021

/ 12:53 PM January 19, 2021

MANILA, Philippines — The Government Service Insurance System (GSIS) on Tuesday announced the extension of its loan program until December 29 this year.

In a statement, the state-run insurance institution said it has already disbursed over P110 billion under its GSIS Financial Assistance Loan (GFAL) program benefitting more than 271,000 government employees since it was launched in May 2018.


GSIS President Rolando Ledesma Macasaet said the state pension fund was also able to release P37 billion even amid its suspension due to the pandemic, of which 89,957 members benefitted.

Through the GFAL, members are allowed to consolidate debt from multiple lenders while enjoying reduced monthly amortization and lower interest rate of 6 percent per annum and longer payment term of six years.


Members will also enjoy higher take-home pay, and their retirement benefits will be protected from loan deductions, according to GSIS.

Aside from this, the loan program also has the top-up loan feature that allows members to borrow the remaining amount for their personal needs.

For instance, if a member’s GFAL loan is P300,000, he or she may borrow the remaining P200,000 under the feature.

To qualify, GSIS said borrowers must be permanent government employees with a minimum of three years of paid premiums or appointed, elected, or nonpermanent government employees with at least 15 years of paid premiums; have outstanding loans from lending institutions; and have no due and demandable GSIS loan.

In addition, they should not be on leave without pay; have no pending administrative or criminal case except if the case is due to loan nonpayment due to the prioritization of GSIS payments; and have a net take-home pay that is not lower than the P5,000 requirement under the General Appropriations Act.

Qualified applicants must submit an accomplished application form; statement of account from the lender; ID of the lending institution’s authorized representative; and loan agreement, voucher, or other certified documents containing the loan details.

They must also submit their previous month’s pay slip prior to the GFAL application certified by the agency authorized officer.


A clear photo of the borrower holding the accomplished form and unified multi-purpose identification card is also required. If unavailable, a photo of their two valid IDs (front and back) may also be submitted.

Requirements can be emailed to their designated GSIS branch office or submit the same in drop boxes located in GSIS branch offices. Their AAO may also submit the requirements on their behalf via email. Liaison officers may likewise submit their application through drop boxes.

One of the requirements for GFAL, a financial literacy seminar, can now be complied with by watching the video explainer posted on the GSIS’s website ( or by attending a virtual seminar via Zoom or Webex, according to GSIS.

Applicants may also participate in the seminar conducted by their respective HR departments.

The loan is released directly to the lending institution through check.  The Top-Up Loan is released to  borrowers either through check or e-credited to their UMID or eCard account. — Zac Sarao, Trainee

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TAGS: GFAL application, government employees, GSIS, loans
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