GSIS opens financial assistance loan for allDepEd members on May 15
READ: ANNOUNCEMENT OF THE NATIONWIDE LAUNCH OF GFAL
The Government Service Insurance System (GSIS) will start to accept applications for the GSIS Financial Assistance Loan (GFAL) program for personnel of the Department of Education (DepEd) starting May 15. Under the program, GSIS will lend a maximum amount of PhP500,000 to DepEd borrowers to pay the outstanding balance of their loan from accredited private lending institutions.
- GFAL APPLICATION FORM - DOWNLOAD
- DOCUMENTARY REQUIREMENTS - DOWNLOAD
“Instead of offering the GFAL to DepEd personnel in selected cities and municipalities on a pilot run, we decided to open it to all teachers and teaching personnel nationwide because we want more teachers to benefit from lower interest rate and better terms of payment from GSIS. Reduced interest rates and smaller amortization spells savings and higher disposable take home pay for our members. This will definitely lighten their load,” GSIS president and general manager Jesus Clint Aranas explained.
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Under GFAL, qualified borrowers may borrow up to Php500,000 provided they have a take home pay not lower than Php5,000 after deduction of monthly obligations. If they are indebted to more than one private lenders, they may consolidate their loans and transfer the total amount to GSIS. The proceeds of the loan will be paid directly by GSIS to the private lending institutions.“This loan program is a balance transfer and debt-consolidation facility in one. It allows the members to take a second look at their spending habits — if they are heavy borrowers, they might be spending beyond their means. The best thing about GFAL is that the borrowers will go through loan evaluation and counselling process and are required to attend the GSIS Financial Literacy Seminar before taking out the loan to adopt good money management practices,” Aranas said.
All DepEd personnel may qualify for the loan if they are active regular GSIS member with permanent status and paid premium for the last three years; not on leave without pay; has outstanding loan from DepEd-accredited lending institution; and has no due and demandable loan account with the GSIS. The borrower should also have no pending administrative case or criminal charge except for those who were sued by an accredited lending institution for non-payment of loan obligations as a result of the prioritization of GSIS and HDMF loan payments under D.O. No. 38, s. 2017 on July 31, 2017. These members are qualified to avail of GFAL.
The interest rate of GFAL is 6% per annum computed in advance payable in monthly instalments for six years. Payments will be automatically deducted from the borrower’s salary. The loan has no processing fee. Availment of the loan is not compulsory but voluntary on the part of the members.