MANILA, Philippines – Effective April 23, the Government Service Insurance System (GSIS) will offer a member loan program with an increased credit limit, longer repayment period and easier application requirements.
The new loan program, called Multi-Purpose Loan (MPL) Plus, will be an upgrade to the old MPL offered to members, GSIS said in a statement.
For one, the credit limit of MPL Plus will be 5 million pesetas, larger than the 3 million pesetas of the previous MPL program.
“The actual amount depends on the premiums paid and the borrower’s monthly salary,” GSIS said.
The tenor of the MPL Plus loan was 10 years longer than the previous MPL program’s seven years, GSIS added.
“Eligible for a 10-year loan term are: permanent employees with at least 10 years of bonus payments; Members with an existing Emergency Home Loan (Help) program account; and special members among agencies with memoranda of understanding to MPL with the GSIS.”
However, non-permanent government employees who have contributed for at least 15 years can pay off the loan in nine years. Previously, their maximum loan term was only five years,” GSIS added.
The GSIS said that “the precalculated uniform interest rate of 7 percent will be applied to all borrowers” under MPL Plus, unlike the previous MPL, where “members with less than three years of paid premiums were charged 8 percent interest compared to those with.” at least three years premiums were charged at 7 percent,” she noted.
MPL Plus also relaxed eligibility requirements for borrowers.
For one, GSIS said that “Members in arrears on their GSIS Financial Assistance Loan (GFAL) and their home loan are not eligible to draw the MPL.” But under MPL Plus, “they can apply, but their arrears under GFAL will be deducted from the proceeds of their loan.”
“Eligible to apply for MPL PLus are regular and special GSIS members who have paid at least three monthly subscriptions; are not on unpaid leave at the time of application; and have no pending administrative or criminal proceedings. Additionally, they should not be affiliated with any agency that has been marked as suspended, and their take-home net pay should not fall below the amount required under the General Appropriations Act (GAA) after all monthly obligations are deducted, GSIS said.
“MPL Llus Consolidates Loan Balances and Fees for Outstanding Pay Loans, Restructured Pay Loans; extended salary loan; loan assistance for emergencies; summer one-month salary loan; conso loan plus/enhanced conso loan plus; Membership Advance/eCard Advance/eCard plus Advance; Home Emergencies Loan Program (Help); Parenting Assistance Loans 1 and 2; study now, pay later; fly PAL, pay later; and stock purchase loans,” GSIS added.
Rolando Macasaet, GSIS President and General Manager, urged members to apply for MPL Plus online.
“Members can apply for the loan through the GSIS Touch mobile app; GSIS Wireless Automated Processing System (Gwaps) kiosks strategically located across the country; E-mail; electronic GSIS member online (eGSISmo); or mailboxes in all GSIS offices. For the safety of both our customers and staff, we only accept over-the-counter or in-person submissions when the Gwaps kiosk is offline or when the applicant has an electronic card (eCard) or a unified multipurpose identification (UMID) card; has unreadable biometric data; or is a temporary eCard holder,” Macasaet said.
Last year, 444,425 GSIS members borrowed a total of 106 billion pesos under the old MPL program.
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