GSIS offers refinancing 

loan facility for DepEd 

TAGBILARAN CITY, May 24 –Now, here is good news for Department of Education (DepEd) workers who are now mired in over-borrowing and is risking default payments and their monthly take home. 

The Government Service Insurance System (GSIS), after accomplishing a Memorandum of Agreement with DepED is now accepting applications for the GSIS Financial Assistance Loan (GFAL), a refinancing program to allow DepEd personnel to unify their payables. 

Despite provisions on the allowable deductions from salaries, there is a noted low collection efficiency turn-out from DepEd, that when left unattended, the risk of teachers getting nothing from their retirement benefits for failure to put up the funds, become real. 

For this, the GSIS will lend a maximum amount of P500,000 to DepEd borrowers to pay for their outstanding loan balances from accredited private lending institutions while the GSIS in the same GFAL package, offers lower interest rates and better payments terms. 

“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 as quoted, explained. 

Under GFAL, qualified borrowers can borrow up to P500,000 provided their take home pay after deductions of their monthly obligations is not lower than P5,000. 

When indebted to more than one private lenders, DepEd personnel may consolidate their loans and transfer the total amount to GSIS so the loan proceeds will be paid directly by GSIS to the private lending institutions. 

“This loan program is a balance transfer and debt-consolidation facility in one,” Aranas said. 

And GFAL also packs another ace. 

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 permanent DepEd personnel who are active regular GSIS members with outstanding loans from DepEd accredited lending facility and without due demandable loan account with GSIS may qualify for the loan. 

The borrower should also have no pending administrative or criminal charges 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. 

Without processing fee, voluntary GFAL offers 6% interest rate per annum computed in advance, payable in monthly installments for six years, payments automatically deducted from the borrower’s salary, according to GSIS. 

To apply, DepEd personnel should submit the following: properly filled-up application form downloadable GFAL Forms from the GSIS website, GSIS-prescribed statement of account, clear photocopy of the authorized representative of the lending firm who will claim the check from the GSIS and contact details; borrower loan agreement, loan voucher or other certified documents indicating the term of loan, interest rate, monthly amortization and due date of first loan amortization; and payslips for the last three months, certified as true copy by the agency authorized officer. 

Interested parties may visit the GSIS website, www.gsis.gov.ph, or Facebook account, @gsis.ph; email gsiscares@gsis.gov.ph; or call the GSIS Contact Center at 847-4747 or 1-800-8-847-4747 (for Globe [free with minimum P8.00 load] and TM subscribers) or 1-800-10-847-4747 (for Smart, Sun, and Talk ’N Text subscribers; P8.00/call). (rahc/PIA-7/GSIS)