The Government Service Insurance System (GSIS) has unveiled a new, borrower-friendly policy for computing penalties on delinquent loan accounts, offering members greater flexibility and easing their financial burden.
The revised approach, aimed at encouraging prompt payments and resolving outstanding balances, will calculate penalties using simple interest based on unpaid amortizations.
“We want to help our members maintain good standing on their loans, particularly during financial hardships,” said GSIS President and General Manager Wick Veloso. “This simpler calculation method gives them a clearer path forward.”
Borrowers can reinstate their accounts to good standing by settling all unpaid amortizations, including the corresponding penalty charges.
For members unable to pay the full amount immediately, the GSIS will accept partial payments on accounts with arrears of up to six months.
This adjustment will enable borrowers to improve their credit standing and regain eligibility for GSIS loan programs.
The policy applies to all outstanding loan balances of active and inactive members, excluding fully paid service loans.
GSIS is finalizing the guidelines for the new policy and will announce details soon.
“This development is part of GSIS’s ongoing commitment to promote financial inclusivity and ease for its members, ensuring that ‘Ginhawa for All’ remains at the heart of our services,” Veloso added.
