QuestionsQuestions (GSIS Resolution No. 60)
GSIS Resolution No. 60 approves the Policy and Procedural Guidelines on the Enhanced GSIS Consolidated Salary Loan Plus Program, and expressly supersedes prior Board Resolutions (BR Nos. 135, 129, 134, and 203) and amends/supersedes inconsistent internal rules and guidelines; the attached PPG is made integral to the Resolution and takes effect immediately.
Active regular members and special members tagged in their Member’s Service Profiles (MSPs), provided they have no pending administrative/criminal case and have paid and remitted at least three (3) monthly premium contributions for both Personal Share and Government Share within the last six (6) months prior to application; employees of agencies tagged as ‘suspended’ are not qualified unless suspension status is lifted.
It is the date when the loan header corresponding to the loan availed of is created in the GSIS IT system. It is crucial because pro-rata interest and certain deductions (e.g., interest advance) are computed based on the dates relative to first amortization and month-end.
Minimum loanable amount is Php15,000.00, and the minimum PPP to qualify is twenty (20) months.
For regular active members, the maximum loanable amount depends on PPP and Basic Monthly Salary (BMS) using Table 1. The increase in maximum loanable amount applies only to regular active members with at least fifteen (15) years of PPP.
To cover advance deductions (interest and Redemption Insurance) and other required fees, the minimum loan amount must be 105% of the outstanding balances (Outstanding Balance × 105%). If the prescribed maximum loan amount is less than the 105% minimum, GSIS sets the loan amount at 105% of the outstanding balance.
It consolidates Salary Loan, Restructured Salary Loan, Enhanced Salary Loan, Emergency Loan Assistance, and Summer One-Month Salary Loan; consolidation results in the full liquidation of outstanding balances (including penalties/surcharges waived upon approval) computed up to the date of granting.
Outstanding penalties and surcharges of the loans to be consolidated are deemed waived upon approval of the application.
If granted on or before the 23rd day of the month, the first amortization is due on the 10th day of the month immediately following loan granting; if granted after the 23rd day, it is due on the 10th day of the second calendar month following loan granting.
Pro-rata charging of interest is adopted, computed from the date of loan granting up to the end of the month when the loan was granted; the PPG further operationalizes this through an advance interest deduction (IDA) from loan proceeds covering days until the end of the month prior to the first due month.
Agency Authorized Officers must certify the loan application through the ‘aSecured On-Line Loan Certification Module’ prior to processing. Only applications certified by the AAO within seven (7) calendar days are processed; applications not acted upon within seven days are cancelled and the member is informed via e-mail.
The Resolution/PPG states the order: (a) Redemption Insurance premium; (b) Principal; (c) Interest; (d) Penalty. Separately, the PPG details ‘application of payments’ with an ‘ove-upa’ approach in arrears and rules for advance payments to principal after satisfying the subject month due.
Monthly amortization (MA) is computed using the loan amount plus monthly RI premium divided by an annuity factor. RI has a rate depending on loan term and an advance RI premium is deducted from loan proceeds: equivalent to 1 month if granted on/before the 23rd day, and equivalent to 2 months if granted after the 23rd day.
Interest is twelve percent (12%) per annum compounded annually based on a diminishing balance. For certain periods, GSIS also deducts pro-rated advance interest (IDA) from loan proceeds.
For an account in arrears, interest is charged and a penalty of 1% per month, compounded monthly, until arrears are paid. For an account in default, a penalty of 6% per annum, compounded monthly, applies; the penalty forms part of outstanding balance deductible from renewal proceeds.
Once credited, the member has no option to cancel the loan; the only option is to pre-terminate by paying the outstanding balance before end of term, without any right to demand reimbursement of fees.
It is deemed pre-terminated upon the death, resignation, permanent disability, retirement, or separation from service of the member; the outstanding balance becomes due and demandable and will be collected from claims of the member or heirs, or via administrative/civil actions.