The Government Service Insurance System has released 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 Ledesma Macasaet said.
Of the total amount of loans granted, P165B was in multi-purpose loan (MPL), which benefitted 468,872 borrowers.
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, 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 M, 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 P7.6B in gross proceeds to 253,481 borrowers.
GSIS also processed a total of 64,381 applications under the GSIS Financial Assistance Loan (GFAL) program from 2021 to May 15, disbursing P27.8B.
Aside from MPL, computer loan, GFAL and GFAL Educational Loan, GSIS also offers the regular policy loan and emergency loan.
It released P8.8B to 355,956 policy loan borrowers and another P5.519B 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.
The pension fund also released P175M to 1,504 members through the GFAL Educational Loan program from 2021 to May 15.
A total of 56,110 pensioners benefitted from the P4.6B 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 P204M paid by GSIS in the same period.
Even inactive members were given the opportunity by GSIS to restructure their loans. Under the Program for Restructuring and Repayment of Debts, GSIS released P203M to 1,498 inactive members. – Press release
