GSIS Offers Cash Loans to GSIS Pensioners

A top officer of the The Government Service Insurance System (GSIS) in Cebu on Monday said GSIS offers cash loan to all GSIS old – age pensioners under the Choice of Loan Amortization Schedule for Pensioners (CLASP) program.

GSIS Regional Manager Ma. Fatima Rivamonte -Alvarez, however, pointed out that qualified CLASP applicants are those without existing service loans with the GSIS.

According to Alvarez, the filing of loan application could be either over-the-counter or through online using the GW@PS Kiosk which are available at any GSIS offices. Alvarez stressed that the loanable amount of every applicant shall be based on the Basic Monthly Pension (BMP) and the pensioner’s age.

“For an applicant who is 65 years old or below, he is entitled to a maximum loanable amount of P100,000; 65 to 69 years old, P60,000; and 70 years old and above, P20,000,” Alvarez said.

Alvarez also assured that all applications received by the GSIS before 12:00 noon on the day of filing shall be processed immediately so that the applicant can take it home automatically.

She also explained that the loan principal, interest and other charges due shall be payable in monthly amortization within 24 months.

The monthly amortization shall be automatically deducted from the monthly pension of the borrower until the amount is fully paid within the scheduled paying period, Alvarez added.

She said the first monthly amortization shall be due on the first day of the month following the granting of the loan and every month thereafter until the loan is fully paid.

Alvarez also added that all loan borrowers shall be covered with a loan redemption insurance where in the event of death of the loan borrower,the theoretical balance of the loan shall be considered paid.

Alvarez also clarified that once the loan amount is fully paid by the borrower, he or she can be allowed to reloan but subject to the eligibility requirements of the GSIS.