The Government Service Insurance System (GSIS) has introduced a more borrower-friendly approach to calculating penalties on delinquent loan accounts, aiming to ease financial burdens and encourage timely payments. The new policy, which simplifies penalty calculations using simple interest on unpaid amortizations, is designed to help members manage their obligations more effectively.
GSIS president Wick Veloso emphasized that the move is intended to provide clarity and assist members, especially during financial challenges. “This simpler calculation method gives them a clearer path forward,” he said.
The revised policy allows borrowers to reinstate accounts to good standing by settling all overdue payments, including penalties. For those unable to pay in full, GSIS will accept partial payments on accounts with arrears of up to six months.
This initiative, which applies to all outstanding loans except fully paid service loans, aims to improve borrowers’ credit standing and facilitate their continued eligibility for GSIS loan programs. The guidelines for the new policy are currently being finalized and will be announced soon. This move aligns with GSIS’s ongoing commitment to financial inclusivity, ensuring its services remain accessible and beneficial to all members.
