GSIS takes over transactions under GFAL, loan requests by e-mail, deposit box

The state pension fund, Government Service Insurance System (GSIS), has announced that it has resumed transactions under the GSIS Financial Assistance Loan (GFAL) “and is now accepting applications by email or by mailbox deposit”.

“Since the safety of our members and employees is our priority and our members need financial assistance more than ever, we are resuming the very popular GFAL transactions via contactless methods,” said Rolando Ledesma Macasaet, president and Managing Director of GSIS. saying. “Members who wish to apply to the GFAL can choose to email their application and documentary requirements or put them in drop boxes located in the halls of the GSIS offices. “

The GFAL is the pension fund’s response to the government’s call to save teachers and other government workers from debt slavery, GSIS said.

Under the GFAL, GSIS said it would pay the outstanding balance of qualified members up to P 500,000 to the lender. Members, in turn, will pay the balance to GSIS at a monthly amortization and interest rate 6 percent lower per annum for a longer payment term of six years.

“If the member’s loan from the credit institution is less than 500,000 pesos, he can borrow the remaining amount as an ‘additional loan’ and the proceeds will be paid directly to him by check that we can deposit on his UMID or his electronic card. account on demand, ”Macasaet said. “If they want to personally withdraw their checks, it will be by appointment to control the number of clients in the office at any given time to prevent the spread of the virus.”

Due to Covid-19, the application and processing of GFAL was temporarily suspended on March 14.

“To overcome the suspension, we have extended the application period until December 31, 2020. The temporary suspension of the loan allowed us [to] put security protocols in place to protect our members who wish to apply for the loan, ”Macasaet said.

“Since social distancing does not allow the conduct of training programs, we have developed online programs for the required attendance at the GFAL Financial Literacy Seminar. Borrowers can choose one of the following options: watch an explanatory video on our website or attend the national live virtual seminar that GSIS will be hosting through Zoom or Webex, ”added Macasaet.

Applicants can also attend a virtual loan counseling and email their signed provisional calculation as confirmation of availability.

GSIS also reduced the previous pay stub requirement from three months to just one month from the date of the request.

Macasaet added that members are eligible for GFAL if they are permanent government employees with an outstanding loan from credit institutions, government banks, cooperatives or other institutions accredited or recognized by their agency; have paid premiums to GSIS for at least three years; and do not have a due and payable GSIS loan. They must not be on leave without pay either; have a net salary of not less than 5,000 pesos after deduction of monthly obligations; and have no pending administrative matters or criminal charges. A borrower whose file is pending is still eligible to request the GFAL if the file was submitted by a credit institution due to non-payment resulting from the prioritization of GSIS payments.

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