GSIS launches new loan program
The Government Services Insurance System (GSIS) on Wednesday announced a new loan program that provides borrowers with an additional line of credit and helps them consolidate and pay off their outstanding loan balances.
In a statement on Wednesday, the state-run pension fund announced that it will launch the GSIS Multi-Purpose Loan Facility (MPL) today, which would offer a low interest rate, enhanced loan consolidation feature. , a longer payment term and a one-time exemption from surcharges on all due and payable GSIS loan accounts of its members, except home and policy loans.
With the introduction of this facility, the improved Conso Plus loan from GSIS will be phased out. Members whose Conso loan applications have been rejected are invited to reapply for GSIS MPL, he added.
Under the GSIS MPL, borrowers can claim up to 14 times their basic monthly salary, as long as it does not exceed 3 million pesos. New beneficiaries will benefit from an exemption from surcharges on the unpaid balance of their loan.
To be eligible, applicants must be active and special members of GSIS who have paid at least three months of bonuses; are not on leave without pay; not have any administrative or criminal case in progress; have no arrears on financial assistance or housing loans from GSIS; and work in agencies with an existing MoU with GSIS.
They must not be marked as suspended by their respective agencies and have a net salary not less than the amount required under the General Appropriations Act after deducting all monthly obligations. Their agency should not be suspended either.
The following GSIS service loans can be paid through MPL: Payday loan; Restructured salary loan; Subsidized salary loan; Emergency loan assistance; One month payday loan for the summer; Conso-Loan Plus or Conso-Loan Plus improved; Member’s cash advance, eCard or eCard Plus Cash Advance; Emergency loan; Emergency Home Loan Program (HELP); Student assistance loan 1 and 2; Fly Pal, pay later; Study now, pay later; and stock loan.
The facility’s interest rate is 7 percent per annum, calculated in advance for members with at least three years of paid membership. For members whose PPP is less than three years and for special members with at least three months of total seniority, the MPL’s interest rate is 8% per annum, calculated in advance.
It is payable in monthly installments of two to seven years, depending on the PPP and the member’s employment status. Those with HELP accounts consolidated under MPL can repay the loan for up to 10 years. The payments will be automatically deducted from the borrower’s salary.