The state workers’ pension fund, the Government Service Insurance System (GSIS), disbursed a total of 151 billion pesos in loans to more than one million members and retirees in 2021.
Total loans disbursed last year were 4% higher than the 2020 total of 145 billion pesos.
“Through our various Ginhawa For All (GFAL) Loan Programs, GSIS has extended its financial assistance at a time when our members and retirees were in dire need of assistance,” said GSIS President and CEO Rolando Ledesma. Macasaet.
GSIS said that of the total amount granted, 106 billion pesos was under GFAL Multipurpose Loans (MPL).
This loan is intended to help active members, especially those who have reached their borrowing limit and are unable to repay their loans. It consolidates members’ existing loans, except for home loans and policies, and removes surcharges on defaulted accounts.
Through GFAL MPL, members can apply for up to 14 times their basic monthly salary, but not to exceed 3 million pesos. It has an interest rate of 7% or 8% depending on members’ premium payments.
In March, GSIS announced that it would launch GFAL GSIS MPL Plus, an enhanced version of its current MPL program.
Under the loan window, the pension fund said it would increase the credit limit to P5 million; extending the maximum payment period to 10 years; and relaxing borrower eligibility requirements.
The pension fund also released 27 billion pesos to 62,974 beneficiaries of the GSIS financial assistance loan, through which members were able to borrow up to 500,000 pesos, consolidate their loans with approved credit institutions in their branches and transfer the remaining balance to GSIS.
For those whose total loan is less than P500,000, they also had the option of applying for the top-up loan to cover the cost of their other needs.
Under the GFAL computer loan program, GSIS said it has disbursed more than 7 billion pesos in gross proceeds, benefiting more than 230,205 borrowers.
The GFAL Computer Loan is a loan window that grants P30,000 assistance to GSIS members to purchase a computer unit for their work from home or their children’s online lessons. GSIS intends to expand the implementation of this program this year.
Similarly, the pension fund granted P6 billion to 269,440 regular and optional borrowers; 1 billion pesos to 38,980 GFAL emergency loan borrowers; and 89 million pesos to 2,035 members through Ginhawa’s educational loan program.
For retirees, 3.03 billion pesos and 96 million pesos were released as GFAL Enhanced Retirement Loan to 38,144 retirees and Retirees Emergency Loan to 4,415 retirees, respectively.
GSIS said it has also made loan transactions safer and more convenient for its members and retirees by making them accessible through online channels such as GSIS Wireless Automated Processing System (GWAPS) kiosks, the member Electronic GSIS Online (eGSISMO) and the new and improved GSIS Touch Mobile App. Loan proceeds are credited directly to the borrower’s GSIS e-card or Unified Multi-Purpose Identification (UMID) card.
The pension fund added that it has also implemented technology-driven initiatives such as the Annual Revalidation of Retiree Information Online (APIR) and a partnership with Bayad.
“Our members can settle their underpaid or unpaid loans through 2,836 active Bayad outlets nationwide and online through UnionBank of the Philippines and Land Bank of the Philippines payment facilities. Very soon, payment solution providers will be able to be supported by alternative payment providers on online collection channels,” Macasaet said. —Ted Cordero/KG, GMA News