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Negative Effects of Unpaid GSIS Loans on Members’ Future Benefits




Attached is the Advisory from the Government Service Insurance System (GSIS) on the Negative Effects of Unpaid GSIS Loans on Members’ Future Benefits.

All member-borrowers are reminded to ensure that their GSIS loans are paid correctly and on time to avoid negative consequences of unpaid loans on their social insurance benefits. Unpaid loans incur interests and penalties. These will be deducted from retirement or separation benefit that might yield little or zero proceeds.

GSIS members reminded on ill effects of unpaid loans

State pension fund Government Service Insurance System (GSIS) has urged its members to ensure religious and accurate loan repayment in order to avoid negative consequences on their social insurance benefits.




“We are reminding our member-borrowers to pay the correct loan amortizations on time. This will preserve their future benefits, which they have earned and should enjoy for devoting their prime in government service,” GSIS Chairman and Acting President and General Manager (APGM) Rolando Ledesma Macasaet said.

He added that if left unpaid, loans incur interests and penalties. When the obligation is deducted from then retirement or separation benefit, it might leave them with little or no proceeds at all




Chairman Macasaet further explained “Responsible borrowing keeps the pension fund healthy. Up-to-date loan payment makes the GSIS fund adequate to tend to other members as well.”

Members with overdue loan accounts may avail of the Enhanced Conso-Loan Plus, which waives all interests, penalties, and surcharges on the existing salary loan accounts.

They are qualified to apply for the loan if they are permanent in employment status; have no pending administrative or criminal case; are not on leave of absence without pay; have a net take-home pay of Php 5,000 after deduction of monthly premium contributions and loan amortizations.




Special members, such as prosecutors and members of the judiciary and constitutional commissions, are also qualified to avail of Enhanced Conso-Loan Plus.

If members are already out of government service and financially incapable to settle their outstanding loan balances in full, however, they may avail of the one-time condonation and restructuring program called GSIS Program for Restructuring and Repayment of Debts (GSIS-PRRD), which has been extended until September 30. 2020

GSIS-PRRD condones all unpaid penalties on the borrower’s outstanding balance. The restructured amount carries an interest rate of 10% per annum compounded annually.

Covered under the program are the following service loans: Salary Loan; Restructured Salary Loan; Enhanced Salary Loan; Emergency Loan Assistance; Summer One-Month Salary Loan; Member s Cash Advance/eCard Cash Advance/eCard Plus Cash Advance; Conso-Loan; Emergency Loan; Home Emergency Loan Program (HELP); Study Now, Pay Later and Fly Pal Pay Later Loans (did not avail of the condonation program in 2014); Education Assistance Loan (did not avail of EAL II); Stock Purchase Loan (did not avail of the condonation program in 2013); Policy Loan; and GSIS Financial Assistance Loan (GFAL). Excluded from the program are loans granted to pensioners and housing loans.

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