Recently, a memorandum of agreement between the Department of Education (DepEd) and Government Service Insurance System (GSIS) to help fund teachers’ loan from private lenders, was signed under the presence of President Rodrigo Duterte
The agreement will facilitate the payment of the loans of teachers and other personnel of DepEd from private lenders, through a loan facility from GSIS.
The borrowers will pay back the loan to GSIS at easy and affordable terms.
The project called GSIS Financial Assistance Loan (GFAL) will be piloted for six months in 12 areas across the country, including Batangas, Bulacan, Dagupan, Naga, Cavite, Manila, Quezon City, Bohol, Ormoc, Koronadal, Butuan and Tagum.
Who can avail of the GFAL?
Active GSIS regular members may apply for the loan if they:
- are permanent;
- have paid premiums for the last three years;
- are not on leave of absence without pay;
- have an outstanding loan with DepEd-accredited PLIs;
- have no due and demandable GSIS loan; and
- have no pending administrative or criminal case.
How much can be availed from the GFAL?
Up to Php500,000 may be availed by qualified members, provided their take-home pay will not go lower than Php5,000 after their monthly obligations have been deducted.
The loan is payable for six (6) years at 6 percent (6%) interest rate per annum computed in advance. Payments will be automatically deducted from the borrower’s monthly salary.
How to avail of the GFAL?
The GFAL will start its implementation on May 15, 2018. To avail, the DepEd personnel must submit the following documentary requirements:
- properly filled-up application form that may be downloaded from the GSIS website (download GFAL form here);
- GSIS-prescribed statement of account (download SOA form here) with clear photocopy of the authorized representative of the lending firm who will claim the check from the GSIS and contact details;
- borrower loan agreement, loan voucher or other certified documents indicating the term of loan, interest rate, monthly amortization and due date of first loan amortization; and
- payslips for the last three months, certified as true copy by the agency authorized officer.
Only complete submissions will be accepted and processed by the GSIS. These requirements shall be submitted to the nearest GSIS office.