GSIS launches multi-purpose loan program

MANILA, Philippines — State pension fund Government Service Insurance System (GSIS) will launch today a new loan facility which will give members an opportunity to consolidate and pay their outstanding balances under better payment terms.

GSIS president and general manager Rolando Macasaet said the new lending window, called the GSIS Multi-purpose Loan (MPL), would offer low interest, enhanced loan consolidation features, longer payment period, and a one-time waiver on surcharges for unpaid loan balances, except housing and policy loans.

“GSIS MPL offers our members affordable payment terms, especially those who have reached their borrowing limit and have been unable to pay their GSIS loans,” Macasaet said.

With the implementation of GSIS MPL, the state fund said the Enhanced Conso-loan Plus will now be phased out. All members with pending Conso-loan applications as of Sept. 30 will be advised to reapply for the MPL.

Under the new program, borrowers may apply for up to 14 times their basic monthly salary but not exceeding P3 million.

First-time applicants can have surcharges waived on their outstanding loan balances.

Macasaet said MPL prevents penalties incurred by members from ballooning and eating up their retirement funds and other benefits.

Qualified for the program are active and special GSIS members who have paid at least three months of premiums, those who are not on leave of absence without pay, those who have no pending administrative or criminal case, those who have no arrears under the GSIS Financial Assistance Loan (GFAL) or GSIS housing loan and those who are working in agencies with existing memorandum of agreements with GSIS.

“We urge government agencies to forge a memorandum of agreement with GSIS so that their employees may enjoy MPL’s benefits in no time,” the GSIS chief said.

In addition, they must not be tagged as suspended by their respective agencies and have a net take-home pay not lower than the amount required under the General Appropriations Act after all monthly obligations have been deducted.

Macasaet said MPL carries an interest rate of seven percent per annum for members who have at least three years of paid premium. For members who have paid premiums for less than three years and for special members with at least three months of service, the interest rate is eight percent per annum.

It is payable in monthly installments, ranging from two to seven years depending on a member’s premium payment period and status of employment.

Those with accounts under the Home Emergency Loan Program that are consolidated under MPL may pay the loan up to 10 years.