Results of 2006 Operations - Part II
Member Loans
The GSIS disbursed a total of P33.34 billion in loans through the GSIS eCard.
Total salary loans disbursed to the 281,051 members amounted to P21.31 billion.
Policy loans granted to 439,054 regular policy holders amounted to P8.25 billion, while P1.01 billion was disbursed for the 59,098 optional policy holders.
In 2006, the GSIS increased the amount of emergency loans extended to members who were victims of typhoones and other calamities. Some 47,735 members benefited from the emergency loan, with total disbursed amount reaching P954.70 million.
The Pension Loan Program continued to provide old-age pensioners with a more responsive facility for their needs. There were 33,578 pensioners who availed of the program, to whom a total of P1.19 billion was granted.
The year 2005 saw the full impact of the GSIS eCard, and transactions using the multipurpose ID card remained steadfast in 2006. Encouraged by this success, the GSIS pioneered the development of GSIS eCard Plus, equipped with radio frequency identification (RFID) that allows the processing of loan applications without any documentary requirement.
A second wave of Cash Advance facility was made available to members who enrolled for the GSIS eCard Plus, brining the total amount of Cash Advances credited to both the GSIS eCard and eCard Plus to P348.45 million by the end of 2006.
The introduction of the Consolidated Salary Loan (or Conso-Loan) in October 2006 kept the momentum high for the eCard Plus, with a total of P266.26 million disbursed to 2,101 member-borrowers by the end of the year. The conso-loan combined the different GSIS loan window (salary loan, restructured salary loan, enhanced salary loan, emergency loan assistance, and summer one-month salary loan) into a consolidated loan for easier lon management on the part of the member and the System. Members were also able to avail of condonation since surcharges were not collected from availees with arrearages.
Housing Loans
Under the Bahay Ko Program, 249 loans were approved with a total loan amount of P222.68 million. Majority of the loans availed were used for construction (36 percent) and home acquisition (35 percent), followed by home combo or the multipurpose housing loan (21 percent), home improvement (4 percent), and refinancing (4 percent).
Another initiative in support of the administration’s thrust to provide affordable housing to government employees is the ongoing Amended Rate Reduction and Restructuring Program. It provides opportunity for borrowers to restructure their loans at lower interest rates, easier payment terms, with condoned penalties and interest discounts while enjoying the possession of their homes.
A total of 3,381 individual loan accounts was approved for restructuring in 2006. Members benefite from the condonation of penalties and surcharges which amounted to P145.60 million, and interest discounts which amounted to P85.20 million.
GSIS’ Participation in the Housing Fair
The GSIS participated in the Housing Fair organized by the Housing and Urban Developent Coordinating Council in the latter part of 2006.
The Board approved the lowering of interest rates to six percent per anum, compounded annually (6 percent p.a.c.a.), for purchases of GSIS Acquired Assets and the lengthening of the amortization period to a maximum of thirty years subject to GSIS evaluation. These liberal terms were offered to GSIS members who availed of the loan during the Housing Fair.
As of end-2006, a total of 21 housing units were sold in the provinces of Bulacan, Laguna, Cavite and Batangas, registering a total gross selling price of P23.76 million. - GSIS Annual Report 2006