GSIS to Implement Enhanced Conso-Loan Plus Program Starting July 1
July 4, 2015
BAGUIO CITY – The Government Service Insurance System(GSIS) will implement the Enhanced Conso-Loan Plus Program starting July 1, 2015.
In an advisory issued to Agency Authorized Officers (AAOs) and Liaison Officers (LOs), the GSIS announced that members who have at least 15 years of service with paid premiums may borrow a 12-month salary loan while those with not less than 25 years of service will be eligible for a 14-month loan.
Previously, the credit limit for these members was only 10 times their salary. The program also extends the maximum payment term for the loan from six to 10 years for members with not less than 10 years of paid premiums.
It was stated that availment of the Enhance Conso-Loan Plus program will result in the consolidation of the following salary loans; Salary Loan, Restructured Salary Loan, Enhanced Salary Loan, Emergency Loan Assistance and Summer One-Month Salary.
The consolidation of the loan will result in the full liquidation of the outstanding balances of said loans, less penalties and surcharges (if any), which are automatically waived under the conso-loan program.
A member should have a computed loanable amount of at least Php15,000 to be able to qualify under the Enhanced Conso-Loan Plus Program. Loan will not be processed if computed loanable amount is less than Php15,000.
The interest rate under the Enhanced Conso-Loan Program will remain at 12% per annum compounded annually based on diminishing balance.
Under the new conso-loan program, GSIS will not give a grace period in the payment of loan amortizations since agencies do not prepare their payroll in advance anymore.
The first monthly amortization for loans granted on or before the 23rd day of the month is due on the 10th day of the month following the grant of the loan. For loans granted after the 23rd day of the month, the first due date is on the 10th day of the second month after the grant of the loan. /JDP/MAWC – PIA CAR