GSIS approves loan forgiveness program
The government services insurance system will offer a one-time loan and restructuring to former members who still owe the state-run pension fund.
In a statement Friday evening, GSIS President and CEO Jesus Clint O. Aranas said the so-called GSIS Debt Restructuring and Repayment Program (GSIS-PRRD) would soon be launched and open to “members. inactive on service loans that were left in abeyance after separation from service.
“Through PRRD, GSIS intends to give its former members relief from the payment of penalties as well as a chance to restructure their loans and pay the balance in installments,” Aranas explained.
Under the GSIS-PRRD, the pension fund will tolerate any unpaid penalties imposed on the unpaid balances of former members, he said.
As for the remaining balances, they will be restructured with an interest of 10 percent, compounded annually, added the head of GSIS.
Aranas said the service loans covered by GSIS-PRRD were the salary loan, restructured salary loan, enhanced salary loan, emergency loan assistance, summer month salary loan, l member cash advance / eCard / eCard cash advance plus cash advance, consumer loan, emergency loan, emergency home loan program (HELP), deferred repayment loans that do not did not use the condolence program in 2014, former student aid loan, stock purchase loan that did not use the condolence program in 2013, policy loan, GSIS financial assistance loan in Ministry of Education staff together to study now, pay subsequent obligations.
However, loans to retirees as well as housing loans will not be covered by the GSIS-PRRD.
Regarding home loans, Aranas noted that the condolence program running until December 31 was offered to more than 15,000 borrowers with unpaid obligations.
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