The Government Service and Insurance System has announced the granting of a moratorium on loan payments of its members and pensioners, including housing loan amortization of borrowers.
“The GSIS Board of Trustees, in compliance with the 'Bayanihan Heal as One' Law, decided to grant a moratorium to our borrowers,” said GSIS president and general manager Rolando Ledesma Macasaet.
Section 4 (aa) of Republic Act 11469, otherwise known as the “Bayanihan Heal as One Law,” instructs all lending institutions to grant a 30-day grace period or extension on loan payments during the Enhanced Community Quarantine period without imposing interest or penalties on borrowers.
Under the said GSIS Board Resolution, collection of loan payments due for the months of March, April and May 2020 shall be deferred.
GSIS would resume collection of loan payments on June 1, 2020 without penalty or additional interest.
All loan terms, as a result of the moratorium, shall be effectively extended by three months.
“We hope that this 90-day grace period will give our members some financial relief in these trying times,” Macasaet said.
Aside from regular government employees, pensioners with GSIS pension loans would also get a moratorium.
“We are halting loan deductions in their next month’s pension (in May),” Macasaet said.
GSIS housing loan borrowers would also not be required to pay their monthly amortizations during the said three-month period.
All GSIS borrowers are automatically covered by the moratorium, except those whose loan accounts are in default as of Feb. 29, 2020. GSIS considers a loan in default when the account has incurred more than six months of unpaid amortizations.
Macasaet said that GSIS already issued a memorandum circular instructing all heads of government agencies to stop loan deductions for the months of March, April and May 2020.
He, however emphasized that premium contributions of government employees would continue to be deducted and remitted to GSIS.
GSIS shall resume collection of loan payments on June 1, 2020.