GFAL - EDUCATIONAL LOAN

Form No. 02202024-GFAL-EDUC REV 01

NOTE: PLEASE READ TERMS AND CONDITIONS AT THE BACK. THIS APPLICATION SHALL NOT BE PROCESSED UNLESS COMPLETELY FILLED OUT.
We hereby apply for a loan in the amount equal to that indicated below pursuant to the provisions of the GSIS FINANCIAL
ASSISTANCE LOAN — EDUCATIONAL LOAN (GFAL-EL). In consideration thereof, WE, the undersigned, hereby promise to
pay jointly and severally the amount including interest charges and penalties accruing thereon to the GOVERNMENT SERVICE
INSURANCE SYSTEM (GSIS), in accordance with the terms and conditions printed at the back of this application form which
we have read and understood clearly, and to which we bind ourselves.
Likewise, we understand that this is a deferred loan and that the payment of monthly amortization is postponed or deferred until
the last loan release has been made by the GSIS. WE understand and bind ourselves to the future payment of monthly
amortization of the loan and l, the member-borrower, shall be responsible for managing my finances to ensure that there is
sufficient available funds from my payroll and other sources of funds, to meet the required monthly payments to the GSIS
Lastly, WE understand that direct or indirect commission of fraud, collusion, falsification, misrepresentation of facts, or any other
kind of anomaly in the accomplishment of this form, or in obtaining any benefit under this application, shall be subject to
administrative and/or criminal action on the part of the borrower, co-maker or both.

NAME AND SIGNATURE OF MEMBER-BORROWER NAME AND SIGNATURE OF STUDENT AND CO-MAKER
(Write "N.A." if the Student-Beneficiary is a MINOR.)
Date Signed. Date Signed.

TO BE FILLED UP BY AGENCY AUTHORIZED OFFICER (AAO)

This Office certifies that: (1) the above signature of the member-borrower is authentic; (2) there is no pending administrative and/or
criminal charge against the member-borrower; (3) the member-borrower is an employee and regular premium-paying member of
GSIS; (4) the member-borrower is not on leave of absence without pay; and (5) the member-borrower has met the net take home
pay (NTHP) requirement required under the General Appropriations Act.
For the Loan granted by virtue of this application, this office agrees to: (1) collect and remit immediately to GSIS the monthly
installment due from said borrower, and (2) in case of his separation from the service, make final payments due him only after
clearance is obtained from GSIS.

Agency Authorized Officer (AAO) BP No. (required) Date

(Signature over Printed Name)

THIS APPLICATION FORM IS NOT FOR SALE AND MAY BE REPRODUCED.

 TERMS AND CONDITIONS

Loan Amount. The loan amount shall be the total of the following: (in case of a 5-year course). The remittance due date, or the date when the
Initial Loan Amount: first monthly amortization of the loan shall have been remitted by the agency
1. Up to 100% of School Fees, composed of tuition and other fees to GSIS, shall be on or before the 10th day of the month after the due month.
(reflected in the tuition assessment form less discount, if any),
depending on the net take home pay of the member-borrower; and 9. Other Loan Program Conditions. (a) Summer classes as form of advance
2. Interest computed for the semester (or tri- or quadmester). classes or as part of the course curriculum shall be covered under the
program. (b) The program shall only cover for the tuition fees and other
Succeeding Loan Amounts: school fees for the standard school term of 4 or 5 years, as the case may
1. Up to 100% of School Fees, composed of tuition and other fees be. Succeeding loan application/s corresponding to the remaining units after
(reflected in the tuition assessment form less discount, if any), the 4 or 5 school years or its equivalent shall be automatically disapproved.
depending on the net take home pay of the member-borrower; and (c) Deferment of enrollment shall for one (1) school year only, and for
2. Interest on the previous and current loan releases computed up to the meritorious reasons such as health conditions, security or force majeure.
latest semester (or tri- or quadmester).
10. Discontinuation of the Program. Should the member-borrower opt not to
The maximum loan amount that can be taken out by a member-borrower for avail of future loan releases under the Program, the repayment period of 5
a given academic/school year is Php l00,000.00. years will start immediately on the month following the end of semester. Pre-
Loan Releases. Loan releases shall be done on a per semester (or tri- Termination during the Repayment Period. The GFAL-EL may be settled
semester or quadmester) basis for a maximum of 5 years from initial loan any time during the repayment period, at the option of the borrower. No pre-
take out, to cover all school fees for up to a 5-year course. The loan termination charges and fees shall be collected by the GSIS. The
release/s shall be computed as follows: outstanding balance shall be composed of the unpaid principal balance,
unpaid interests and RI premiums computed up to the end of the month
Loan Amount (Tuition and Other Php XX,XXX.XX when the loan is to be settled.
School Fees based on Assessment
Form or actual need of Borrower) 11. Compulsory Termination of the Loan and Cancellation of Future Loan
Less: Redemption Insurance Premium xxxx.xx Releases. The GSIS shall declare, without notice to the member-borrower,
that the entire obligation (with respect to a particular student-beneficiary) is
Service Fee xxx.xx
due and demandable, and shall automatically cancel future loan releases
Net Loan Amount or Loan Proceeds I Php XX,XXX.XX under any of the following circumstances: (a) the member-borrower was
Cash Release to School pre-terminated from government service due to death, resignation,
The difference between the loan amount/tuition fee and net loan amount or permanent disability, retirement or separation, or dismissal from service
loan proceeds is the 'equity participation' on the part of the member- during the study period; (b) the member-borrower made misrepresentation
borrower, to be paid directly by the member-borrower to the educational in connection with the loan; (c) the student-beneficiary failed to re-enroll in
institution/s. Capitalized interest shall be computed monthly on the loan the succeeding school term for non-meritorious reasons such as dropping
releases for the duration of the study period, and shall form part of the out, suspension or expulsion, among others. Additional Sanction for
principal balance of the loan. Misrepresentation. Misrepresentation made by the member-borrower in
connection with the GFAL-EL loan, such as the relationship with the student-
The proceeds of the loan shall be paid directly to the educational institution beneficiary, shall also be subject to criminal and/or administrative charge.
concerned for the account of the student-beneficiary.
12. Penalty for Arrearages. An account is considered in arrears if: (a) there is
Principal Balance. The principal balance of the GFAL-EL loan shall be payment for monthly installment but the remittance of said payment is
computed as the total of: (a) The loan amounts covering the loan releases delayed; (b) the actual amount paid for the month is less than the amount
made by the GSIS during the study period, including capitalized interests• due for the same month; or (c) there is no payment made for the month. The
and (b) Interests for the 1-year allowance period of 12 months, if applicable. unpaid amount shall incur a penalty at the rate of 1% per month
Loan Term. The total term of the loan is ten (10) years, divided into 2 parts: compounded monthly, until the arrears are paid
(a) Study period is the period in which the student-beneficiary is still in
13. Default. In the event of default, the outstanding balance of the loan
school. Maximum years for the study period is 5 years; and (b) The total
becomes due and demandable without need of demand or further notice, all
principal balance shall be amortized starting one (1) year after the end of
of which the borrower expressly waives. Accounts in default shall be
semester (of last loan release), and shall be payable over a period of not
endorsed for appropriate legal action within thirty (30) working days from
more than five (5) years. However, in case of a 5-year course, the
default. The outstanding balance of due and demandable loans shall be
repayment period is still 5 years.
charged a penalty of 18% per annum compounded monthly (p.a.c.m.),
Interest Rate. (a) Study Period / Before the Start of Repayment Period: 8% broken down as interest (on the outstanding balance) of 12% p.a.c.m. and
per annum, capitalized, in order to allow the member-borrower maximum surcharge of 6% p.a.c.m., from the date of default until the date of full
liquidity and financial flexibility during the study period (b) Repayment payment.
Period: 8% per annum computed in advance. The monthly interest shall be
computed based on diminishing balance. Pro-rata interest computation shall 14. Authority to Deduct. The member-borrower authorizes the GSIS to set off,
be applied (for both initial and succeeding loans) if the date of loan granting collect or withhold an amount equivalent to the outstanding obligation of the
is not the first day of the month. The Effective Interest Rates are as follows: GFAL-EL from any money, property that may now or hereafter be due to the
member-borrower in the possession of the GSIS, upon default of any of the
Semester Tri-Sem Quadmester terms and conditions of the loan agreement. Likewise, the member-
Study Period and 8.3000% 8.3000% 8.3000% borrower authorizes the GSIS, through the employer (government agency),
Allowance Period to deduct from the terminal leave benefits any remaining outstanding loan
Repayment Period 15.0768% 15.0768% 15.0768% obligations they may have with the GSIS upon their separation or retirement.
The proceeds of the life insurance benefit as well as retirement benefits of
Whole Loan Term 10.9910% 11.4477% 11.7327% the member-borrower are hereby assigned to the System to be applied as
Redemption Insurance. The GFAL-EL shall have redemption insurance payment of whatever balance is still unpaid; likewise, upon default in any of
(RI) to safeguard the interests of the borrower, student-beneficiary/ies and the terms and conditions of the loan agreement.
the GSIS in case of contingency during the term of the loan. The
contingencies covered shall be death and permanent total disability for the 15. Restricted Availment of Other GSIS Loans. The GSIS shall put in place
member-borrower and designated student-beneficiary/ies. The GFAL-EL RI monitoring tools that will check and restrict, if necessary, the availment by
rate shall depend on the term of the loan, which shall be determined from the member-borrower of other GSIS loans in the future to ensure that there
the remaining study period of the student-beneficiary at the time of loan is sufficient fund to meet the future payment of monthly amortization for the
application. In the event of death or permanent total disability of a member- GFAL-EL.
borrower or student-beneficiary during the term of the loan and the account We confirm that we have read and fully understood the GFAL-EL Terms and
is not in default, the insurance proceeds from the RI benefits shall be applied Conditions and undertake to comply with them.
as payment to the current outstanding balance of the loan. The loan shall
be deemed paid by virtue of the RI if the member-borrower or student- Finally, pursuant to R.A. No. 9510, otherwise known as the "Credit Information
beneficiary dies and the loan is up-to-date. The same applies if the member- System Act", and its Implementing Rules and Regulations (IRR), we hereby
borrower or student-beneficiary became permanently and totally disabled. acknowledge and consent to: 1) the regular submission and disclosure of our
In case the loan is in arrears, only the theoretical outstanding balance shall basic credit data and updates thereon to the Credit Information Corporation
be covered by the RI benefit and shall be deemed fully paid. The arrearages, (CIC); and 2) the sharing of our basic credit data with lenders authorized by
however, shall be deducted from whatever benefits due the deceased or the CIC, and credit reporting agencies and outsourced entities duly accredited
permanently disabled member or student-beneficiary. In case the by the CIC, subject to the provisions of R.A. No. 9510, its IRR and other
arrearages exceed the benefits due, the excess shall be deducted from the relevant laws and regulations.
subsequent benefits due the heirs. The RI shall be deemed lapsed or DATA PRIVACY CONSENT
cancelled once the loan account is declared in default. Thus, the
outstanding balance at the time of death or permanent total disability shall We hereby confirm our understanding of the Privacy Policy of the GSIS pursuant to
be due and demandable and shall be deducted from whatever benefits due. the requirements of R.A. 10173, otherwise known as the DPA, its Implementing Rules
In case the outstanding balance exceeds the benefits, the excess shall be and Regulations and other issuances of the National Privacy Commission and
collected from the subsequent benefits due the heirs. consent to the manner of and safety measures to be observed in the collection, use,
Co-Maker. The student-beneficiary/ies is/are automatically the co-maker/s access, disclosure, processing and disposal of our personal and sensitive personal
to the loan. The obligation of both the member-borrower and co-maker/s data by the GSIS.
is/are solidary, and the GSIS may go against the co-maker at the same time
or independent of the member-borrower, pursuant to Article 1216 of the Civil
Code. For minor student-beneficiary/ies, the continued release of the loan
proceeds upon reaching the age of majority is contingent on the beneficiary MEMBER-BORROWER (Signature over Printed Name)
signing as co-maker of the entire loan.
Due Date of Monthly Amortization. The due month of the loan is set on STUDENT/ CO-MAKER (Signature over Printed Name)
the month following the end of the 12-month grace period (in case of a 4year
course) or the end of the semester where the last loan release was made