The Government Service Insurance System (GSIS) has overhauled its loan penalty computation method, shifting to a simpler, more borrower-friendly system to provide financial relief to its members.
In a statement, Wick Veloso, GSIS president and general manager, said the state pension fund aims to encourage prompt loan repayments and help members resolve outstanding balances with this change.
Veloso also said the new policy focuses on simple interest calculations for penalties on unpaid amortizations.
“We want to help our members maintain good standing on their loans, particularly during financial hardships," Veloso said. "This simpler calculation method gives them a clearer path forward."
The revised policy allows borrowers to reinstate their accounts by settling all unpaid amortizations and penalties.
For those unable to make full payments immediately, GSIS will accept partial payments on accounts with up to six months of arrears. This applies to all active and inactive members with outstanding loan balances, excluding fully paid service loans.
Veloso added that the change is part of GSIS’s commitment to promoting financial inclusivity for its members.
“This development is part of GSIS’s ongoing commitment to promote financial inclusivity and ease for its members, ensuring that ‘Ginhawa for All’ remains at the heart of our services,” he added.
The GSIS is currently finalizing the guidelines for this new policy and will announce further details soon.