MANILA – Inactive members of the Government Service Insurance System (GSIS) will have more time to settle their loans as the condonation program has been extended to June 30.

GSIS president and general manager Rolando Macasaet announced on Tuesday that they will waive all penalties from outstanding principal loans.

“We encourage our inactive GSIS members to apply for this program, which also gives them the option to pay their loan balances on a three-year installment basis at 10 percent interest per annum only,” Macasaet said in a statement.

Dubbed Program for Restructuring and Repayment of Debts (PRRD), Macasaet said the one-time condonation and restructuring program covers various service loans like salary loans, cash advances, consolidated loans, emergency loans, educational assistance loans, and policy loans.

PRRD availees may settle their loans directly at GSIS offices or through partner payment facility Bayad Center.

"If the borrower is a retiree who will receive the pension at age 60 or after five years, the payment may be deducted from his or her pension. If the loan will be settled by the legal spouse, he or she may have it deducted from the survivorship pension or pay through the almost 3,000 Bayad partner outlets nationwide," Macasaet added.

He said the GSIS intends to recover and collect outstanding loan accounts through PRRD to ensure members will continue to receive their benefits. (PNA)