The Government Service Insurance System (GSIS) has rolled out a debt relief program to aid borrowers currently facing payment challenges in its housing loan program.
In a statement on Wednesday, May 8, Wick Veloso, GSIS president and general manager, said that the program is designed to provide timely assistance to the most severely affected members.
“The GSIS envisions to help thousands of families under the debt-restructuring program, to lessen the pressures from other financial obligations. This will remove a large amount of stress for many, many families," Veloso said.
In the first quarter of this year, GSIS has granted debt relief to around 1,143 housing loan borrowers through its Housing Accounts Restructuring and Condonation Program (HARCP).
As part of the program, penalties totaling P1.6 billion have been waived, and interest discounts amounting to P121 million have been provided.
“Our priority at GSIS is to ensure the well-being of our members and our pensioners. We are fully committed to help our members successfully manage their housing loans and secure their homes. Our mission is to offer support — eviction is not our goal. We continuously support them and ceaselessly provide viable solutions in times of need," Veloso stressed.
This condonation program is part of the broader 4PH initiative launched by the Marcos administration through the Pabahay para sa Bagong Bayaning Manggagawa ng Pamahalaan (PBBM) project.
As part of this initiative, high-rise residential buildings are being built to make homeownership more attainable and cost-effective for every government worker.
“This move will help these families secure their homes during the most difficult of times. We are here to listen, understand, and help them find the best way forward.” Veloso added.
The HARCP offers borrowers the opportunity to reduce their monthly payments by restructuring their loans, extending repayment periods for up to 10 years, and receiving a 50 percent discount on remaining interest if they fully settle their debt.
Borrowers also have the option to clear their overdue payments to bring their accounts up to date. Four payment methods are available: payroll deductions, monthly cash or manager’s checks, post-dated checks, or through the GSIS Housing Online Payment system.
Another GSIS program is the Lease with Option to Buy (LWOB), which simplifies the process for individuals seeking housing.
This initiative involves GSIS leasing over 13,000 housing units nationwide, with lessees having the opportunity to purchase the unit without a down payment.