GSIS offers new top-up loan program

GSIS offers new top-up loan program

Government Service Insurance System (GSIS) state pension fund recently introduced a new feature in its latest loan transfer and consolidation program called the GSIS Financial Assistance Program (GFAL).



Under GFAL, GSIS members may transfer their loan of up to Php500,000, to the pension fund from lending institutions, such as government banks and cooperatives, that are duly accredited by their agencies.

READ: GSIS offers Php 500K Top-up Loan to its members


The loan, which has a lower interest rate of six percent per annum and longer repayment period of six years, will be directly paid to the lending institutions.

“However, should a member’s total loan with the lending institution be below Php500,000, the balance may be applied for as Top-Up Loan, with the proceeds directly payable to the borrowers through check,” GSIS Chairman olando Ledesma Macasaet said.

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“We introduced the Top-Up Loan to help GFAL borrowers augment their funds to defray for their other needs. Instead of running to private lenders for a fresh loan, members are instead advised to optimize their GFAL and take advantage of the lower rate and longer payment terms,” he added.

GFAL, which was initially offered to public school teachers and employees of the Department of Education (DepEd) last May 2018, aims to improve their financial capacity and help them refinance their outstanding loans with lending institutions.


Last July, GSIS xpanded the program’s coverage to other agencies and local government units due to the strong interest. “We heeded their demand recognizing that all GSIS members should enjoy the same privileges for the sake of equality and fairness.”

Macasaet also pointed out that GFAL is in response to the call of President Rodrigo Duterte to help improve the financial situation of teachers and other government employees who fall prey to money lending schemes, such as ‘5-6’, which are often tied with hefty double digit interest rates.

Agencies should first enter into a memorandum of agreement (MOA) with GSIS to enable their employees to avail themselves of GFAL.



Active regular or special members who have permanent employment status, have no pending administrative case or criminal charge, and are not on leave without pay are qualified to apply for the new loan program.

They should also have at least three years of period with paid premiums, have no due and demandable loan account with GSIS, and have a take-home pay not lower than P5,000 after all monthly obligations have been deducted which is required under the General Appropriations Act.

Borrowers may apply for GFAL and Top-Up Loan only once.
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2 comments

Unknown said...

matagal din sila mag release ng top up loan,almost a month na wala pa daw kasi inde pa daw na aayos ang system sa mga naunang nag GFAL.

Anonymous said...

Nag gfal ako tapos may arrears na naman eh from the start may deduction nman sa payslip meaning ngbbayad ako ng maayos. Sabi ng gsis wala daw sa kanila ang diptrnsya latr daw magremit ng bayad ang deped.. Sabi nmn ng deped maaga daw nila nirremit ang mga hulog. Sino may kasalanan...? Kaya ang ending teacher na nman magssuffer ng arrears na yan walang katapusang arrears.. Nakakainis niloloko lang nila amg mga teacher sa GFAL na yan.