Question & AnswerQ&A (GSIS Resolution NO. 44)
All active GSIS members whose salary loan accounts are in arrears or in default are eligible to apply for the restructuring of their loans.
Only penalties and surcharges are condoned. No part of the principal or interest shall be condoned.
The gross loan amount includes the outstanding balance of the principal, unpaid interests (net of surcharges and penalties), service fees, and salary loan redemption insurance (SLRI).
The repayment period ranges from two (2) to four (4) years at the option of the member-borrower, with an interest rate of 12% per annum based on the declining balance of the restructured loan.
The monthly installment (MI) is computed using the formula: MI = Monthly Installment Factor nt (MIF) * Gross Loan/1000, where n = term and t = duration from loan grant to first due date in months and days.
If restructuring approval is on or before the 10th of the month, the first installment is due at the end of the following month; if after the 10th, then at the end of the next following month.
A 1% service fee is charged based on the outstanding balance of the principal plus unpaid interests (net of surcharges and penalties) and is included in the gross loan amount.
The LRI covers the theoretical outstanding balance of the loan at the time of the member-borrower's death. The premium is a one-time charge added to the loan, computed as 1.2% for 24 months, 1.6% for 36 months, and 2.0% for 48 months times the loan amount (outstanding principal and unpaid interests).
A surcharge of 0.5% per month is imposed on delayed monthly installments.
No, member-borrowers with restructured salary loan accounts are prohibited from availing of the regular salary loan program concurrently.
Renewal is permitted only after payment of six monthly installments and if there are net proceeds on the renewal loan. The terms for renewal follow the regular salary loan conditions.