Government Service Insurance System (GSIS) introduces the Multi-purpose Loan Flex program for teachers that offers transparent loan tracking, allowing them to see their payments towards principal and interest.
Interest rates range from seven percent to six percent for teachers with a minimum of three years of premium contributions. Repayment period can extend up to 15 years.
The MPL Flex includes a revised computation for penalty interests on default loans.
Timely repayments are important to avoid accumulating more interest and penalties.
Unpaid loans may impact retirement or separation benefits.
Teachers and GSIS members can apply for the MPL Flex through the GSIS Touch mobile app.
Eligibility requires at least one month of paid premiums.
GSIS improves teacher loans with MPL Flex
Sep 26, 2023 06:51 AM
At a glance
State-owned Government Service Insurance System (GSIS) has introduced a loan program for teachers with longer payment terms and lower interest rates.
In a statement on Tuesday, Sept. 26, GSIS President and General Manager Wick Veloso said that this initiative aligns with the Department of Education’s (DepEd) MATATAG program.
The MATATAG program stands for making the curriculum relevant for job readiness, accelerating education services, caring for learners' well-being, and supporting teachers.
This program was launched to decongest the current K to 12 curriculum.
“We assure the DepEd and all our teachers that the GSIS is continuously working to make our lending process and loan calculations clearer,” Veloso said.
Through GSIS’ Multi-purpose Loan Flex program, teachers will have a more transparent view of their loan. This allows them to see where their payments proceed within the principal and interest.
The MPL Flex is the new loan program designed to offer teachers and other GSIS members loans from seven percent to six percent for those minimum of three years of premium contributions and an extended repayment period of up to 15 years.
Because of the new program, teachers will be able to view their comprehensive breakdown of their payment schedules.
The MPL modifications even included a revised computation on the default loans’ penalty interests.
Veloso explained further that unpaid loans will accumulate more interest and penalties. Which is why he said that it is important to accomplish certain repayments on time.
"If these outstanding amounts are offset against retirement or separation benefits, teachers could potentially receive diminished proceeds,” he said.
To apply for the MPL Flex, teachers and other GSIS members can process their application online via the GSIS Touch mobile app.
The eligible applicants must have at least one month of paid premium in order to apply for the loan. (Gabriell Christel Galang)