GSIS to offer loan of up to 5M starting April 23
The Government Service Insurance System (GSIS) will offer a member loan program with a higher credit limit, longer repayment period, as well as easier application requirements beginning on April 23.
Multi-Purpose Loan (MPL) Plus is the new lending program and will be an improvement of the old MPL offered to members.
MPL Plus credit limit will be P5 million, bigger than the MPL program’s P3 million.
“The actual amount will depend on the borrowers’ paid premiums and monthly salary,” the GSIS said.
MPL Plus loan term was a lengthier 10 years, compared with seven years in the prior MPL program, the GSIS added.
“Qualified for a 10-year loan term are: permanent employees who have at least 10 years of premium payments; members with existing home emergency loan program (Help) account; and special members under agencies with memoranda of agreement on MPL with the GSIS.”
“Non-permanent government personnel who have at least 15 years of premium contributions, on the other hand, may pay for the loan in nine years. Previously, their maximum loan term was only five years,” the GSIS added.
The GSIS said that “the uniform interest rate of 7 percent computed in advance will be applied to all borrowers” under MPL Plus, unlike in the preceding MPL wherein “members with less than three years of paid premiums were charged 8-percent interest, while those with at least three years of premiums were charged 7 percent,” it noted.
MPL Plus also relaxed borrowers’ eligibility requirements.
GSIS said that “previously, members with arrearages in their GSIS financial assistance loan (GFAL) and housing loan are not qualified to avail of the MPL.” But under MPL Plus, “they will be allowed to apply, but their arrearages under GFAL will be deducted from the proceeds of their loan.”
“Qualified to apply for MPL PLus are regular and special GSIS members who have paid at least three months of premiums; are not on leave of absence without pay at the time of application; and have no pending administrative or criminal case. In addition, they should not belong to an agency which has been tagged as suspended, and their net take-home pay should not go lower than the amount required under the General Appropriations Act (GAA) after all monthly obligations have been deducted,” the GSIS said.
“MPL Llus consolidates loan balances and charges for outstanding salary loan, restructured salary loan; enhanced salary loan; emergency loan assistance; summer one-month salary loan; conso loan plus/enhanced conso loan plus; member’s cash advance/eCard cash advance/eCard plus cash advance; home emergency loan program (Help); educational assistance loans 1 and 2; study now, pay later; fly PAL, pay later; and stock purchase loan,” the GSIS added.
Rolando Macasaet, GSIS president, urged members to apply for MPL Plus online.
“Members may apply for the loan via the GSIS Touch mobile app; GSIS wireless automated processing system (Gwaps) kiosks strategically located nationwide; e-mail; electronic GSIS member online (eGSISmo); or drop boxes located in all GSIS offices. For the safety of both our clients and employees, we will only accept over-the-counter or in-person filing if the Gwaps kiosk is offline, or if the applicant has lost or defective electronic card (eCard) or unified multipurpose identification (Umid) card; has unreadable biometrics; or is a temporary eCard holder,” Macasaet said.