GSIS warns members of penalties for overdue loans

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THE Government Service Insurance System headquarters in Pasay, Philippines. Photo taken on May 28, 2012. — BW FILE PHOTO

The Government Service Insurance System (GSIS) urged its members to settle past due loan amounts until end-September to avoid further penalty charges.

“Paying off your loan will… enable you to avail of other GSIS benefits which you could not enjoy if you have defaulted on your loans,” GSIS President and General Manager Jesus Clint O. Aranas was quoted as saying in a statement Thursday.

The state pension fund said it will start collecting penalties and surcharges on past due loan accounts starting October 1.

According to Mr. Aranas, the pension fund’s “forgone” interest income from loan investments will be aggravated if GSIS continues to refrain from collecting penalties.

At present, GSIS is not collecting surcharges on past due loan accounts on members that are in active service.

GSIS said a way to settle members’ loan account is through the availment of Enhanced Conso-loan Plus program.

Clients can also avoid the predicament of having their retirement pay eaten up by loan balance by restructuring their salary loan accounts through the Enhanced Conso-loan Plus program.

The pension fund is extending the restructuring scheme to help its members ease their financial burdens to enjoy their full benefits in their retirement. — Karl Angelo N. Vidal