Funding Amount and Allocation
- Initial allocation set at Php5 billion to support the housing loan program.
- Funding provided jointly by GSIS and HDMF upon board approvals.
Availability and Term
- Facility availability contingent on approval by both the GSIS and HDMF Boards.
- Loan tenor fixed at 20 years, allowing long-term financing.
Interest Rate and Payment Terms
- Interest rate established at 4.75% per annum.
- Interest payments to be made semi-annually throughout the loan tenor.
- Loan repayment structured as a bullet payment, meaning the principal amount is repaid in full upon loan maturity.
Prepayment Conditions
- Borrowers are allowed to prepay the loan in whole or in part.
- No penalty shall be imposed for prepayment or early loan termination.
Fees and Charges
- Handling, application, and renewal fees associated with the loans are waived, reducing borrower costs.
Requirements for Loan Security and Documentation
- Loans secured by clean documentation ensuring legal clarity and enforceability.
- Documents required include:
- Loan Agreement
- Notice of Borrowing
- Promissory Note
- Any other necessary documents to operationalize the credit facility.
Authorization and Implementation
- The GSIS President and General Manager are authorized to execute agreements and take all necessary actions for implementation.
- Ensures operational and administrative processes to facilitate the credit facility's effective rollout.
Legal and Operational Framework
- Establishment formalized through GSIS Board Resolution No. 192 dated August 25, 2011.
- Provides a governance and operational framework for the program under GSIS and HDMF collaboration.