State-run Government Service Insurance System (GSIS) has launched a new condonation and restructuring program with longer and affordable payment terms.

In a statement, the pension fund for government workers said the Restructuring Program for Service Loans (RPSL) would benefit GSIS' former members, pensioners, re-employed members, and other borrowers with unpaid loans.

This is a one-time condonation and restructuring program aimed at providing borrowers with overdue to have a more flexible and lighter option to pay their deadlines, GSIS said.

Along with that, the borrowers will have demandable service loans, penalties, and surcharges.

The RPSL would efficiently improve the pension fund’s loan collection.

The program covers various service loans, including the GSIS Salary Loan, Enhanced Salary Loan, Restructured Salary Loan, Emergency Loan Assistance, Summer One-Month Salary Loan, Member’s Cash Advance, and eCard Plus Cash Advance.

It also includes Consolidated Loan (and the enhanced version), Emergency Loan, Home Emergency Loan program, Study Now Pay Later, Fly PAL Pay Later, Education Assistance, Stock Purchase, and Policy Loan, Optional Policy Loan.

In addition, it covers GSIS Financial Assistance Loan, Program for Restructuring and Repayment of Debts, Multi-Purpose Loan (MPL Flex), Computer Loan, etc.

However, the RSPL does not include the Real Estate Loan, Deed of Conditional Sale, Restructured Real Estate Loan, Pension Loan, Pension Emergency, and Pensioner’s restructured loan.

Wick Veloso, GSIS president and general manager said that they hope to address the concerns of those who wish to settle their obligations in full or in part through flexible means.

He explained that availing the program would allow members to have a  three percent to six percent interest rate.

“By paying a down payment of at least 10 percent of their outstanding balance, they can now pay the remaining balance on a five-year installment basis at a max of six percent per annum only,” Veloso said.

Borrowers may apply for this program over the counter at any GSIS office.

A duly accomplished RPSL application form is required along with a clear photocopy of Phil ID, GSIS eCard, valid passport, or any two government-issued IDs.

Those who have already accomplished the application may then settle their loans over-the-counter in cash or a manager’s check at the nearest GSIS office.

Re-employed members may also have their payment shifted to a payroll deduction and senior pensioners through an old-age pension deduction.

“By strengthening our loan collection efficiency, we are also protecting the financial health of the pension fund so that members may avail of benefits and services when they fall due,” Veloso said. (Gabriell Christel Galang)