Over 250,000 members of the Government Service Insurance System (GSIS) were able to avail of Multi-Purpose Loan (MPL) since last year.
GSIS, in a statement issued Friday, June 25, announced that it has granted a total of P65 billion in multi-purpose loans to its 250,783 members since it opened the program last October 1, 2020.
“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.
The GSIS Multi-Purpose Loan (MPL) is the loan facility consolidates all service loans and waives surcharges on all in-default loan accounts.
GSIS said that the qualified member-borrowers may apply for up to 14 times their basic monthly salary but not to exceed P3 million.
Meanwhile, the first-time availees will enjoy waived surcharges on their outstanding loan balance.
GSIS explained that the MPL prevents penalties incurred by members for unpaid GSIS loans from ballooning and eating up their retirement and other benefits.
The MPL also has a low interest rate of seven to eight percent depending on the member’s premium payments and 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,” GSIS said. “Payments will be automatically deducted from the borrower’s salary,” it added.
GSIS explained that those who are 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.
“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,” GSIS said. “Their agency must not also be on suspended status,” it added.
GSIS also listed its service loans to be consolidated under MPL in the following order: 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; Home Emergency Loan Program (HELP); Education Assistance Loan I and II; Fly Pal, Pay Later; Study Now, Pay Later; and Stock Purchase Loan.
Meanwhile, GSIS clarified that not included are housing loan, policy loans and emergency loan except for emergency loan accounts in arrearages and in default in which case the amount in arrears or in default will be deducted from the proceeds of the MPL.
Interested applicants may send emails to the GSIS handling branch or over-the-counter or via drop box in all GSIS branches and extension offices nationwide.
GSIS said that the MPL proceeds will be “directly credited” to the borrower’s GSIS electronic card (eCard) or unified multipurpose identification (UMID) card.