GSIS grants P221 billion loans to 1.4 million workers, pensioners

MANILA, Philippines — The Government Service Insurance System (GSIS) has released a total of P221 billion in loans to 1.38 million active members and pensioners nationwide from January 2021 to May 15.

“We rolled out several programs under our Ginhawa for All benefit bundles to extend financial assistance at a time when our members and pensioners needed it most,” GSIS president and general manager Rolando Macasaet said.

Of the total amount of loans granted, P165 billion was in multi-purpose loan (MPL), which benefitted 468,872 borrowers from January 2021 to May 15.

The loan aims to help active members, particularly those who have reached their borrowing limit and unable to pay their loans. MPL consolidates members’ existing loans and waives surcharges on in-default loan accounts.

In April 2022, GSIS launched the enhanced MPL program by coming out with the MPL Plus.  Under MPL Plus, members may apply for up to 14 times their basic monthly salary, but not to exceed P5 million, depending on their premium payments. The loan has a low interest rate of seven percent and its term has been extended to 10 years.

Under another loan product, the Computer Loan program, GSIS disbursed P7.6 billion in gross proceeds to 253,481 borrowers. It is a loan window that grants a P30,000 assistance to GSIS members for the purchase of a computer unit for their work-from-home arrangement or their children’s online classes. The computer loan is payable in three years with six percent interest per annum.

This year, GSIS extended the implementation of the program for another three months (or until June 2022) to give more time for the 1.56 million qualified members to avail of the loan.

The agency also released P8.8 billion to 355,956 policy loan borrowers and another P5.519 billion to 165,352 emergency loan borrowers from January 2021 to May 15.

Policy loan is a program where members may avail of from their GSIS life insurance policy. The loan, bearing an eight percent interest rate, may be paid either through monthly amortization or deduction from a member’s existing life insurance policy contract. Emergency loan, on the other hand, aims to assist government employees and old-age and disability pensioners in times of natural calamities and disasters.

Meanwhile, a total of 56,110 pensioners benefitted from the P4.6 billion released by GSIS from January 2021 to May 15 under the Enhanced Pension Loan.

Another 7,903 pensioners were granted Pensioners’ Emergency Loan from the total amount of P204 million paid by GSIS in the same period.

“We faced the struggles and embraced the challenges brought about by the pandemic, so we can provide the essential needs of our clients – convenience, protection, and safety. We encourage our members and pensioners to avail of GSIS loan programs to aid them in their various expenses.  By doing so, they are also helping GSIS sustain its actuarial life and enable us to pay our members and pensioners their benefits as and when they fall due,” Macasaet said.