GSIS: P221 billion in loans released from January 2021 to May 2022

The Government Service Insurance System (GSIS) on Thursday said it released a total of P221 billion in loans to 1.38 million active members and pensioners nationwide in the period from January 2021 to May 15, 2022.

In a statement, the GSIS said of the total amount of loans granted, P165 billion was in multi-purpose loans (MPL), which benefitted 468,872 borrowers from January 2021 to May 15, 2022.

MPLs aim to help active members, particularly those who have reached their borrowing limit and are unable to pay their loans, it said.

MPLs consolidate members’ existing loans and waive surcharges on in-default loan accounts.

“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,” said GSIS president and general manager Rolando Ledesma Macasaet.

In April, the GSIS launched the enhanced MPL program by coming out with the MPL Plus. 

Under the 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 7% and its term has been extended to 10 years. 

Meanwhile, under another loan product, the Computer Loan program, the GSIS said it 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 6% interest per annum.

This year, the 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 GSIS added that it also processed a total of 64,381 applications under the GSIS Financial Assistance Loan (GFAL) program from 2021-May 15, 2022, disbursing a total amount of P27.8 billion.

The GFAL is a balance-transfer facility aimed at enabling GSIS members to settle their outstanding loan balance with other lending institutions with reduced interest rate and longer payment terms.

Through the GFAL program, the pension fund intends to improve the financial capability of GSIS members and save them from the bondage of debt.

Aside from MPLs, computer loans, and GFAL and GFAL Educational Loans, the GSIS also offers the regular policy loans and emergency loans.

It 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, 2022.

The policy loan is a program where members may avail of from their GSIS  life insurance policy.

The loan, bearing an 8% interest rate, may be paid either through monthly amortization or deduction from a member’s existing life insurance policy contract.

Emergency loans, on the other hand, aim to assist government employees and old-age and disability pensioners in times of natural calamities and disasters. 

The pension fund also released P175 million to 1,504 members through the GFAL Educational Loan program from 2021 to May 15, 2022.

This program was GSIS’s response to the call of the government for credit support to education in light of the economic effects of the pandemic, the pension fund said.

It is a study-now pay-later loan program intended for the college education of children or relatives of active GSIS members.

The maximum amount that may be borrowed per academic year is P100,000 covering tuition and other school fees. The interest rate is only 8%.

A GSIS member may nominate up to two student-beneficiaries under the program.

Meanwhile, a total of 56,110 pensioners benefited from the P4.6 billion released by GSIS from January 2021 to May 15, 2022 under the Enhanced Pension Loan.

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

Even inactive members were given the opportunity by the GSIS to restructure their loans.

Under the Program for Restructuring and Repayment of Debts (PRRD), the GSIS said it released a total of P203 million to 1,498 inactive members. The PRRD is a one-time condonation and restructuring program for inactive GSIS members with outstanding loans.

GSIS members who are already out of government service and financially incapable to settle their outstanding loan balances in full may apply for PRRD. — BM, GMA News