Clarification of Interest Application and Transparency
- The addendum clarifies that the interest for the initial three months is accounted for by spreading it over the loan tenure.
- This approach aligns with GSIS's commitment to transparency in loan-related transactions.
- The method complies with Republic Act No. 3765 (Truth in Lending Act), which requires full disclosure of finance charges, including interest and penalties, to loan availing members.
Legal and Institutional Approval
- The addendum was proposed by the Senior Vice-President of Corporate Services Group and Corporate Planning Office in a memorandum dated July 3, 2012.
- It was then formally endorsed by the Corporate Governance Committee in their August 2, 2012, meeting.
- The GSIS Board approved and confirmed the addendum, thereby officially incorporating it into Section III of PPG No. 201-09.
Continuing Effect of Existing Policy
- Despite the addendum, all other provisions of PPG No. 201-09 dated September 17, 2009, regarding the GSIS Conso-Loan Plus Program remain effective and binding in full.
- The addendum acts as a supplement and does not repeal or diminish any other policy guidelines previously established under PPG No. 201-09.