The Government Service Insurance System said it granted P65 billion in multi-purpose loans to 250,783 members since it opened the program on Oct. 1, 2020.
Dubbed the GSIS Multi-Purpose Loan, the loan facility consolidates all service loans and waives surcharges on all in-default loan accounts.
“We encourage our other members, especially those who have reached their borrowing limit and have been unable to pay their GSIS loans, to avail of GSIS MPL’s affordable payment terms,” GSIS president and general manager Rolando Ledesma Macasaet said.
Qualified member-borrowers may apply for up to 14 times their basic monthly salary but not to exceed P3 million. First-time availees will enjoy waived surcharges on outstanding loan balance. MPL prevents penalties incurred by members for unpaid GSIS loans from ballooning and eating up their retirement and other benefits.
MPL has a low interest rate of 7 percent to 8 percent depending on the member’s premium payments. It is payable in monthly instalments from two to seven years depending on a member’s premium contribution and employment status. Those with HELP accounts that are consolidated under MPL may pay the loan up to 10 years. Payments will be automatically deducted from the borrower’s salary.
Qualified to apply for MPL are active and special GSIS members who have paid at least three months of premiums; are not on leave of absence without pay; have no pending administrative or criminal case; have no arrears under the GSIS Financial Assistance Loan or GSIS housing loan; and are working in agencies with existing memorandum of agreement with GSIS.
They should 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. Their agency must not also be on suspended status.
MPL proceeds will be directly credited to the borrower’s GSIS electronic card or unified multipurpose identification card.