GSIS offers loan program for LGU employees in Tarlac

MANILA, Philippines — State-run Government Service Insurance System (GSIS) has opened a P170 million loan facility for employees of four local government units (LGUs) in the province of Tarlac, the state pension fund said over the weekend.

GSIS chairman and acting president Rolando Macasaet signed a memorandum of agreement with Tarlac Governor Susan Yap, Anao Mayor Rafael Naral, La Paz Mayor Venustiano Jordan, and Mayantoc Mayor Julie Icmat, allowing employees of the LGUs to avail of loans under the GSIS’ Financial Assistance Loan (GFAL) program.

The four LGUs joined some 400 government agencies who have already entered into GFAL agreement with GSIS.

“GFAL is GSIS' response to the call of President Rodrigo Duterte to help government employees settle their financial obligations with lending institutions. GSIS will refinance their loans up to P500,000 with lending institutions at a lower interest rate of six percent per annum and payable at a longer term of up to six years. GFAL borrowers stand to take home higher take-home pay and protect their retirement benefits from future deductions. We appeal to government employers to help us make this a reality,” Macasaet said.

The pension fund chief said GFAL was launched in response to the President’s call to “free government employees from unscrupulous lending institutions or loan sharks which offer 5-6 schemes with double digit interest rates.”

GFAL was initially offered to public school teachers and employees of the Department of Education last May 2018 to improve their financial capacity and help them refinance their outstanding loans for lending institutions.

Last July, the state pension fund started to expand the program’s coverage to other agencies and local government units due to the strong interest.