IN JUST about 100 days, the Government Service Insurance System (GSIS) released P70.5 billion worth of loans to government employees under a new program that also ensures that earlier loans are repaid.
The state insurer said the amount was released to more than 258,000 borrowers nationwide under its Multipurpose Loan (MPL) Flex program from Sept. 9 to Dec. 21, 2023.
Launched last September, the MPL Flex consolidates all of a member’s existing loans, except the housing loan, the GSIS said.
In a statement, GSIS President and General Manager Wick Veloso said MPL Flex offers “the lowest interest rate” in the market today at six percent, aside from “the most flexible payment terms” to government employees as members may choose repayment terms of between one and 15 years.
Members may borrow up to 14 times their basic monthly salary. The maximum limit is P5 million.
Veloso said GSIS members could use the MPL Flex for personal and investment purposes, which means they could use it to pay for a home or to start a small business.
According to a brief on the program in the GSIS website, the consolidation of the GSIS member’s loans will result in their full liquidation as their outstanding balances will be deducted from the proceeds of MPL Flex.
Under MPL Flex, these 12 loans will be consolidated: 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; Educational Assistance Loan I and II; Fly PAL, Pay Later; Study Now, Pay Later; and Stock Purchase Loan.
Eligible for MPL Flex are active and special GSIS members who are not on unpaid leave, have made at least a month’s premium payment, and whose net take-home pay, after deduction of all monthly obligations, is at least P5,000.
For a quick and paperless process, members are encouraged to apply through the GSIS Touch mobile app or GWAPS kiosk. Loan proceeds are credited to the member’s eCard account, the insurer said.