The state pension fund has launched a loan facility dubbed as GSIS Multipurpose Loan (GSIS MPL) that would allow members to consolidate and pay their outstanding GSIS loan balances.
The Government Service Insurance System (GSIS) stated on its press statement that the GSIS MPL offers low interest, enhanced loan consolidation features, longer payment terms and one-time waiver of surcharges on all due and demandable GSIS loan accounts of its members, except housing and policy loan.
GSIS president and general manager Rolando Macasaet said that the new loan program offers affordable payment terms to members “especially those who have reached their borrowing limit and have been unable to pay their GSIS loans”.
The Enhanced Conso-loan Plus will be phased out with the implementation of GSIS MPL. All members with Conso-loan applications that have not been approved by the concerned Agency Authorized Officers (AAOs) on September 30 will be advised to reapply for GSIS MPL.
Borrowers may apply for up to 14 times their basic monthly salary but not to exceed P3 million. First-time borrowers of GSIS MPL will enjoy waived surcharges on their outstanding loan balance.
Macasaet said GSIS MPL prevents penalties incurred by members for unpaid GSIS loans from ballooning and eating up their retirement and other benefits.
The state pension fund stated that members who are qualified to apply are those 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 (GFAL) or GSIS housing loan; and are working in agencies with existing Memorandum of Agreement (MOA) with GSIS.
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. Their agency must not also be on suspended status.
“We urge government agencies to forge a memorandum of agreement with GSIS so that their employees may enjoy MPL’s benefits in no time,” Macasaet said.
The state pension fund said that service loans that could be paid through MPL are Salary Loan; Restructured Salary Loan; Enhanced Salary Loan; Emergency Loan Assistance; Summer One-Month Salary Loan; Conso-Loan Plus or Enhanced Conso-Loan Plus; Member’s Cash Advance, eCard Cash Advance, or eCard Plus Cash Advance; Emergency Loan; Home Emergency Loan Program (HELP); Education Assistance Loan I and II; Fly Pal, Pay Later; Study Now, Pay Later; and Stock Purchase Loan. Not included in the program is GSIS’s housing loan and policy loans.
The interest rate is seven percent per annum computed in advance for members who have at least three years of paid premium. MPL proceeds will be directly credited to the borrower’s GSIS electronic card (eCard) or unified multipurpose identification (UMID) card.
“For members whose PPP is less than three years and for special members with at least three months of total length of service, MPL’s interest rate is 8 percent per annum computed in advance.”
MPL is payable in monthly instalments from two to seven years depending on a member’s PPP and status of employment. 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.
Borrowers may apply for MPL through over-the-counter at all GSIS branches and extension offices nationwide or through the following methods such as dropbox located in all GSIS branches nationwide; email to the GSIS handling branch; Electronic GSIS Members Online (eGSISMO), the web-based facility of GSIS; and GSIS Wireless Automated Processing System (GW@PS) kiosk for those in the GSIS Head Office.