Question & AnswerQ&A (GSIS Resolution No. 60)
It is a loan program approved by GSIS Board Resolution No. 60 on April 30, 2015, that consolidates various existing loans of a member into a single loan with improved terms, including extended maximum loan term, increased maximum loanable amount for qualified members, and removal of the grace period for monthly amortizations.
Active regular members and special members tagged as such in their Member Service Profiles who have no pending administrative or criminal cases, have paid at least three monthly premium contributions within the last six months, and are employees of non-suspended agencies.
The minimum loanable amount is Php 15,000.00. Maximum loanable amount depends on the member's Period with Paid Premiums (PPP) and Basic Monthly Salary (BMS), ranging from 3x BMS for PPP > 20 months up to 14x BMS for PPP > 25 years for regular active members.
Salary Loan, Restructured Salary Loan, Enhanced Salary Loan, Emergency Loan Assistance, and Summer One-Month Salary Loan can be consolidated under this program.
Outstanding penalties and surcharges on consolidated loans shall be waived upon approval of the application.
For loans granted on or before the 23rd day of the month, the first monthly amortization is due on the 10th day of the following month. For loans granted after the 23rd day, it is due on the 10th day of the second calendar month following loan granting.
Interest is computed at 12% per annum compounded annually on a diminishing balance basis. Pro-rata interest from the date of loan granting up to the end of the granting month is deducted in advance from loan proceeds.
RI is an insurance coverage protecting the loan in case of the borrower's untimely death. It covers the theoretical outstanding loan balance up to the loan term. The RI premium is deducted in advance, and upon death, if the loan is current or in arrears, it may be fully or partially paid by the RI, with any arrearages handled accordingly.
The outstanding balance becomes due and demandable immediately. Interest at 12% per annum and a penalty of 6% per annum compounded monthly apply from the date of default until full payment. GSIS may pursue collection through administrative or civil means.
The loan may be pre-terminated by paying the outstanding balance early. Once loan proceeds are credited to the member's eCard account, the loan cannot be canceled, but pre-termination without reimbursement of fees is allowed.