GSIS launches low interest loan program for its members
The Government Services Insurance System will launch a loan facility on October 1 that offers a low interest rate, improved loan consolidation functionality, longer payment term, and one-time surcharge waiver on all bank accounts. GSIS loan due and payable by its members, with the exception of home loans and policies. . Dubbed the GSIS Versatile Loan, the new loan program provides borrowers with an additional line of credit that will help them consolidate and pay off outstanding balances on their GSIS loans. With the implementation of the GSIS MPL, the improved Conso Plus Loan will be phased out. All members with Conso loan applications that have not been approved by the authorized agents of the relevant agency on September 30, 2020 will be invited to reapply for GSIS MPL. “GSIS MPL offers our members affordable payment terms, especially those who have reached their borrowing limit and were unable to pay off their GSIS loans,” said Rolando Ledesma Macasaet, President and CEO of GSIS. Under the MPL, borrowers can claim up to 14 times their basic monthly salary, but not to exceed Php 3 million. New applicants will benefit from a surcharge waiver on their outstanding loan balance. Macasaet said MPL prevents penalties incurred by members for unpaid GSIS loans from inflating and eroding their pensions and other benefits. Active and special GSIS members who have paid at least three months of bonuses are eligible for MPL; are not on leave without pay; not have any administrative or criminal case in progress; have no arrears under the GSIS Financial Assistance Loan or the GSIS Housing Loan; and work in agencies with an existing MoU with GSIS. In addition, they must not be labeled as suspended by their respective agencies and have a net take-home pay no less than the amount required under the General Appropriations Act after deducting any monthly obligations. Their agency should not be suspended either. “We urge government agencies to enter into a memorandum of understanding with GSIS so that their employees can enjoy the benefits of MPL in no time,” said the head of the pension fund.
The following GSIS service loans can be paid through MPL in the following order: 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 cash advance, eCard cash advance or eCard Plus cash advance; Emergency loan; Emergency home loan program; Study assistance loan I and II; Fly Pal, pay later; Study now, pay later; and stock loan. Housing loans and GSIS policy loans are not included in the program. MPL’s interest rate is 7 percent per annum calculated in advance for members who have 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 interest rate is 8% per year calculated in advance. MPL 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. Members can apply for an OTC MPL at all GSIS branches and extension offices nationwide or by the following methods: drop box located at all GSIS branches nationwide; e-mail to the GSIS processing branch; Electronic GSIS Members Online, the web installation of GSIS; and the GSIS wireless automated processing system ([email protected]) kiosk for those at the GSIS head office. The proceeds of the MPL will be directly credited to the borrower’s electronic GSIS card (eCard) or to the unified multipurpose identification card (UMID). For further details on GSIS MPL, interested parties can visit; Interested parties can visit the GSIS website, Government Service Insurance System; GSIS Facebook account, @ gsis.ph; E-mail [email protected]; or call
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