State pension fund Government Service Insurance System (GSIS) has allocated P1.18 billion in a loan transfer for a total of 2,371 GSIS members in the City Government of Mandaluyong.
This was after GSIS Chairman and Acting President and General Manager Rolando Ledesma Macasaet and Mandaluyong Mayor Carmelita “Menchie” Abalos signed a memorandum of agreement implementing the GSIS Financial Assistance Loan (GFAL) program for employees of the city government.
GFAL supports the campaign of President Rodrigo Duterte to end “5-6” and other high-interest money lending schemes that take advantage of cash-strapped government workers and leave them falling deeper into debt. According to the President, this is “a kind of oppression, which has to be eliminated.”
“We don’t want you to fall prey to loan sharks and become victims of ‘5-6’. That is why we came up with GFAL. GFAL’s interest is only 6% per year, which translates to only 0.5% per month, and payable for six years,” Macasaet said, addressing the employees of Mandaluyong after their flag raising ceremony and the GFAL MOA signing in the city hall.
Macasaet added that GFAL will make life easier for Mandaluyong employees because of its low interest and longer repayment period that will increase their take-home pay and protect their future retirement benefits.
GFAL is the balance-transfer and debt-consolidation facility of GSIS that aims to help active GSIS members settle their outstanding loan obligations with lending institutions.
Members may borrow up to a maximum of P500,000. If their loan balance is lower than the maximum amount, they may apply for the remaining credit as a Top-Up Loan. The proceeds of GFAL will be paid directly to the lending institution, while the Top-Up loan will be released to the member.
To qualify for GFAL, applicants must be permanent government employees with outstanding loan from lending institutions, government banks, or cooperatives accredited or recognized by their agency; have at least three years of periods with paid premiums; and have no due and demandable loan account with GSIS.
In addition, they should 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 have no pending administrative case or criminal charges.
All GSIS offices are open every Saturday for GFAL transactions, including the conduct of a financial literacy seminar, which is a requirement prior to loan processing.
Interested parties may visit the GSIS web site (www.gsis.gov.ph) or Facebook account (@gsis.ph); e-mail gsiscares@gsis.gov.ph; or call the GSIS Contact Center at 8847-4747, 1-800-8-847-4747 (for Globe and TM subscribers), or 1-800-10-847-4747 (for Smart, Sun and Talk ‘n Text subscribers).