By CHINO S. LEYCO
State-run Government Service Insurance System (GSIS) and the Manila City Government have signed an agreement allowing employees to transfer and consolidate their loans from private lending institutions to the pension fund.
GSIS Acting President and General Manager Rolando Ledesma Macasaet and Manila City Mayor Francisco "Isko Moreno" Domagoso signed the agreement that will open a ₱2.2-billion loan transfer and consolidation program to all city government qualified employees.
Called GSIS Financial Assistance Loan Program (GFAL), members may transfer loans amounting up to ₱500,000 to the pension fund from lending institutions, such as government banks and cooperatives, that are duly accredited by the city government.
The loan, which has an interest rate of six percent per annum and repayment period of six years, will be directly paid by GSIS to the lending institutions.
If the amount of the loan balance transferred to GSIS is lower than ₱500,000, borrowers may apply for the remaining credit as “Top-Up” Loan for their other needs.
“This is a loan transfer and consolidation program that means if you have an existing loan with a lending institution, we will settle it and transfer the loan to GSIS and you will then pay directly to GSIS,” Macasaet said.
He said they will set up a GSIS service desk at the Manila City Hall to accept GFAL applications.
For his part, Domagoso said, “This is one way of protecting the future of our employees who dedicated their lives to public service.”
“GFAL is our intervention measure in response to President Rodrigo Duterte’s order to help end the cycle in which GSIS members fall prey to predatory lending businesses that charge staggering interest rates,” Macasaet said.