2 months ago
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THE Government Service Insurance System (GSIS) announced on Jan. 24, 2025 a more borrower-friendly approach to the computation of penalties on delinquent loan accounts designed to provide greater flexibility for members.
This policy shift aims to ease the financial burden on GSIS borrowers while encouraging prompt payments and the resolution of outstanding balances.
Under the revised policy, penalties will now be computed using simple interest based on the unpaid amortizations, making it easier for members to understand and manage their payment obligations.
"We want to help our members maintain good standing on their loans, particularly during financial hardships. This simpler calculation method gives them a clearer path forward," GSIS President and General Manager Wick Veloso said.
Under the new policy, borrowers can reinstate their accounts to good standing by settling all unpaid amortizations, including the corresponding penalty charges.
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For members unable to pay the full amount immediately, GSIS will accept partial payments on accounts with arrears up to six months.
This relaxation of penalty rules will help borrowers improve their credit standing while also giving them the opportunity to regain eligibility for GSIS loan programs.
The policy covers all outstanding loan balances of active and inactive members, excluding fully paid service loans.
GSIS is currently drafting the guidelines for the member-friendly policy and will announce these as soon as finalized.
"This development is part of GSIS' ongoing commitment to promote financial inclusivity and ease for its members, ensuring that 'Ginhawa for All' remains at the heart of our services," Veloso added.
