Government personnel now enjoys GSIS Conso-Loan

By Philippine Information Agency (PIA 8)
August 16, 2007

TACLOBAN CITY, Leyte  –  All members of the Government Service Insurance System (GSIS) may now avail of the new GSIS loan procedure known as consolidated salary loan otherwise known as Conso-loan.

It was learned from GSIS that the Conso-loan is equivalent to the members 10 months salary and this may be availed by GSIS members who have been in government service for at least 10 years.  Such loan is the consolidation of the five different loans granted by GSIS to its members.  These loans are the regular loan, policy loan, summer one-month salary loan, and the emergency loan assistance.

For those who have been in service for only 20 months, he may avail of a three-month salary loan.

According to GSIS, one positive factor of this Conso-loan is the length of repayment period, which is stretched to six years and the condemnation of outstanding penalties and surcharges of previous loans. Another advantage is the updating of loan accounts.

GSIS emphasized that for a member to be able to enjoy the Conso-loan, the agency where he belongs should not be on the suspended list of the GSIS due to arrearages; the member has had no administrative charge and his take-home pay should be sufficient to pay the loan.

In the new electronic certification system in the granting of the Conso-loan, GSIS trained the Agency Authorized Officers (AAO) who takes part in processing the loan transactions. The AAO is the one who approves or disapproves the loan and then have it recorded to payroll deduction.