President Rodrigo Duterte today witnessed the signing of an unprecedented memorandum of agreement between the Government Service Insurance System (GSIS) and the Department of Education (DepEd) that will facilitate the payment of the loans of teachers and other personnel of DepEd from private lenders, through a loan facility from GSIS.
“We don’t want DepEd employees to sink deep into debt, so we have proposed a better way for them to manage their finances. The borrowers will pay back the loan to GSIS at easy and affordable terms,” GSIS President and General Manager Jesus Clint Aranas said.
He added that having several loans weakens the employees’ capability to settle their obligations, which include payment of their monthly GSIS premiums and contributions.
“Payment of their GSIS premiums and loans usually take a back seat. If the practice continues, their future GSIS benefits are bound to suffer,” Aranas added.
The project reinforces the issuance of DepEd Order (DO) No. 38 on 31 July 2017 reiterating the instruction to prioritize premium and loan payments for GSIS for other loans.
GFAL will be piloted for six months in 12 areas across the country, including Batangas, Bulacan, Dagupan, Naga, Cavite, Manila, Quezon City, Bohol, Ormoc, Koronadal, Butuan and Tagum.
Active GSIS regular members may apply for the loan if they are permanent; with paid premiums for the last three years; are not on leave of absence without pay; have an outstanding loan with DepEd-accredited PLIs; have no due and demandable GSIS loan; and have no pending administrative or criminal case.
If a private lender has filed a case against members for nonpayment of obligations after GSIS loan payments have been prioritized by virtue of DO No. 38, such members are still eligible to apply for GFAL.
Qualified members may borrow up to Php500,000, provided their take-home pay will not go lower than Php5,000 their monthly obligations have been deducted. (-more-)
The loan is payable in monthly instalments for six years at 6 percent interest rate per annum computed in advance. Payments will be automatically deducted from the borrower’s salary.
The application form and requirements will be made available to all DepEd agencies covered under the pilot test program, by the first week of May this year.
Interested parties who have inquiries may visit the GSIS website, www.gsis.gov.ph, or Facebook account, @gsis.ph; email firstname.lastname@example.org; or call the GSIS Contact Center at 847-4747 or 1-800-8-847-4747 (for Globe [free with minimum Php8.00 load] and TM subscribers) or 1-800-10-847-4747 (for Smart, Sun, and Talk ’N Text subscribers; Php8.00/call).
source: GSIS Website