MANILA, Philippines — The state-run fund for government employees has issued a record P289 billion in credit to more than 1.2 million members under its flagship Multi-Purpose Loan (MPL) program.
The Government Service Insurance System (GSIS) is gaining headway in promoting the MPL, as it has provided financial support to over 1.2 million members to date.
Since GSIS launched MPL Flex in September 2023, it has disbursed P282 billion to 1.05 million members as of end-2024, up by 35 percent from P208.17 billion in the first year of implementation.
GSIS also extended P7.2 billion to 197,675 members under MPL Lite. As such, GSIS president and general manager Jose Arnulfo Veloso believes the MPL is becoming one of the agency’s most effective financial instruments.
The MPL Flex was created only 16 months ago but is fast gaining popularity among members for extending loans of up to 14 times their monthly base pay, capped at P5 million. The loan charges an interest of six percent, and repayment can be extended to as long as 15 years.
Likewise, Veloso sees the rising demand for MPL Flex as evidence that members are looking for flexible ways to borrow from the GSIS.
Financially, GSIS is strong enough to support the growing level of borrowings among members, as its assets have grown by eight percent to P1.8 trillion as of the third quarter of 2024.
During the same period, GSIS increased its net income by 58 percent to P120 billion, as revenue went up by 27 percent to P204 billion.
The fund’s non-life business is also building up its financial position, backed by gross premiums of P8 billion. GSIS has placed investments in multiple industries like energy, food, infrastructure, mining and property to keep its finances in the pink of health.
Veloso said the fund is working on ways to expand credit opportunities for its members who are in need. Still, he underscored that the long-term goal of GSIS is to maintain enough funds to give out benefits mandated by law.
“Our strong financial performance strengthens our capacity to serve members through accessible loan programs, while securing the long-term sustainability of their benefits,” Veloso said.
To date, GSIS maintains a fund life that can last until 2058, ensuring pension for members once they retire.