THE Government Services Insurance System (GSIS) and the San Juan City government formed a loan program to help employees and public school teachers in San Juan City to settle their outstanding loans from private lending institutions.
Mayor Francis Zamora and GSIS Chairman and President Rolando Macasaet yesterday signed the Memorandum of Agreement for the GSIS Financial Assistance Loan Program (GFAL) II. The program aims to settle outstanding loan obligations of GSIS members to other lending institutions.
Under the program, all interested GSIS members could loan as much as P500,000 payable in monthly installments for six years at a reduced interest rate of six percent per annum.
The program, which is a debt-consolidation and balance-transfer facility in one, also requires borrowers to undergo a financial literacy seminar to learn good money management practices.
In other private lending institutions, the city mayor said government employees have to pay an interest of three percent per month, or 36 percent per year, for their loans.
“With GFAL program, the members will be able to refinance their outstanding loans through a more affordable loan package from GSIS,” Zamora said.