The Government Service Insurance System (GSIS) announced on Friday a revised policy for calculating penalties on delinquent loans, aiming to improve collections and ease the financial burden on members.
The new policy, which shifts to a simpler interest-based calculation for unpaid amortizations, is expected to encourage prompt loan repayments.
This move aims to provide greater flexibility for GSIS members and help them maintain good standing on their loans, said GSIS president and general manager Wick Veloso.
Under the revised policy, members can reinstate their accounts by settling all unpaid amortizations and corresponding penalties. The GSIS will also accept partial payments on accounts with arrears up to six months.
The move is expected to improve member credit standing and enhance their eligibility for future loan programs. The policy covers all outstanding loan balances, excluding fully paid service loans.
GSIS is currently finalizing the guidelines for the new policy, which will be announced soon.
