Gov't workers can now consolidate debt at 6% interest with GSIS MPL Max


State-run Government Service Insurance System (GSIS) launched a loan buyout program today, allowing government workers to consolidate their debts at interest rates as low as six percent.

In a statement on Monday, Feb. 3, Wick Veloso, GSIS president and general manager, said the new program aims to shield members from excessive interest rates in the lending market.

“Through the MPL Max, we are throwing a lifeline to our members who are weighed down by debt. This goes beyond consolidating loans – we are helping our members rebuild their lives by creating a clear path to financial recovery and stability,” Veloso said.

The MPL Max program begins with a memorandum of agreement between the GSIS and the government agency. Once signed, employees of that agency can consolidate all their existing loans into a single loan with lower interest rates and extended payment terms.

The program allows qualified borrowers to borrow up to 19 times their salary or ₱5 million, whichever is lower, with payment terms extending up to 10 years.

The GSIS has eliminated surcharges on existing GSIS loans and waived all service fees. The program also includes loan insurance coverage at no additional cost and offers the flexibility to pre-terminate the loan without penalties.

To qualify, members must have paid at least one month of premium contributions within the past six months, have no existing multi-purpose loans, and no defaulted GSIS Financial Assistance Loans. They must also be free of administrative or criminal cases and have sufficient net take-home pay as required by the General Appropriations Act.

Required documents include the application form, borrower loan agreement, loan voucher or other certified documents showing existing loans, statement of account from lending institutions with the borrower's confirmation of correctness, a copy of the ID of the lending institution's authorized representative who will claim the check from GSIS, and the latest pay slip.

The GSIS said members should submit these documents in person after setting an appointment through its GSIS Touch facility. “Our appointment system guarantees that each member receives proper attention when applying for this financial relief program,” Veloso said.

Upon approval, the GSIS will directly pay off the members' loans to the lending institutions. Any remaining proceeds will be credited to the member's GSIS eCard or regular ATM account. Monthly payments will be automatically deducted from the member's salary.