GSIS extends deadline for GFAL program

MANILA, Philippines — Employees of the Department of Education (DepEd) have until July 26 next year to refinance their outstanding loans through the Government Service Insurance System (GSIS)’s Financial Assistance Loan program, the state pension fund said yesterday.

In a statement, GSIS chairman and acting president Rolando Macasaet said the deadline for application under the GSIS Financial Assistance Loan (GFAL) program for public school teachers has been extended to July 26, instead of the original deadline of Dec. 27 this year.

“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,” Macasaet said.

GFAL allow GSIS members to consolidate and transfer their existing loan balances amounting up to P500,000 from other lending institutions to the state pension fund.

If a member’s total loan is below P500,000, the balance may be applied for as a top-up loan, with the proceeds directly payable to the borrowers through check.

The loan carries an interest rate of six percent per annum, payable in monthly installments for six years, and will be paid directly to the lending institutions.

Macasaet said the program was in response to the call of President Duterte to help improve the financial situation government employees who fall prey to money lending schemes, which are often tied with high interest rates.

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

In July 2019, the state pension fund started to expand the program’s coverage to other agencies and local government units due to the strong interest.

“We reiterate that the deadline for application for GFAL for the rest of GSIS members is also July 26, 2020,” Macasaet said.

Members who have permanent employment status, have no pending administrative case or criminal charge, and are not on leave without pay are qualified to apply for the program.

They should also have at least three years of period with paid premiums, have no due and demandable loan account with GSIS, and have a take-home pay not lower than P5,000 after all monthly obligations have been deducted.