NextGen Day

MANILA, Philippines — From January 2021 to May 15, 2022, the Government Service Insurance System (GSIS) disbursed a total of PHP221 billion in loans to 1.38 million active members and retirees countrywide.

“Under our Ginhawa for All benefit bundles, we launched many programs to provide financial support to our members and retirees at a time when they were most in need.” GSIS, inaasahang mangalaga sa seguridad at kapakanan ng mga kawani ng gobyerno, alam namin. Ang malaking responsibilidad na ito ay bahagi ng ating tungkulin (We understand that GSIS would be responsible for the security and well-being of government personnel.) GSIS President and General Manager Rolando Ledesma Macasaet remarked in a news release on Thursday, “This great duty is part of our mandate).”

A total of PHP165 billion in multi-purpose loans (MPLs) were provided, with 468,872 borrowers benefiting. The loan is intended to assist active members, especially those who have reached their borrowing limit and are unable to repay their debts. MPL consolidates current loans and waives surcharges on in-default loan accounts for its members.

GSIS released the MPL Plus in April 2022, which was an upgraded version of the MPL program. Members of MPL Plus can apply for up to 14 times their basic monthly salary, but not more than PHP5 million, depending on how much they spend in premiums. The loan has a low interest rate of 7% and has been extended to a length of ten years.

GSIS disbursed PHP7.6 billion in gross funds to 253,481 customers through another lending product, the Computer Loan program. It’s a loan program that gives GSIS members up to PHP30,000 towards the purchase of a computer for their work-from-home business or their children’s online studies. The computer loan has a three-year repayment period and a 6% annual interest rate. This year, GSIS extended the program’s execution for additional three months (until June 2022) to offer the 1.56 million qualified members more time to apply for the loan.

From 2021 to May 15, 2022, GSIS processed 64,381 applications under the GSIS Financial Assistance Loan (GFAL) program, disbursing a total of PHP27.8 billion.

GSIS members can use the GFAL to repay their outstanding loan balances with other lending institutions at a lower interest rate and for a longer period of time. GSIS hopes to increase the financial competence of GSIS members and free them from debt slavery through GFAL.

GSIS also offers a regular policy loan and an emergency loan in addition to MPL, computer loan, GFAL, and GFAL Educational Loan. From January 2021 to May 15, 2022, it distributed PHP8.8 billion to 355,956 policy loan borrowers and PHP5.519 billion to 165,352 emergency loan borrowers.

A policy loan is a service that members can use to borrow money from their GSIS life insurance policy. The loan, which has an interest rate of 8%, can be repaid monthly or with a deduction from a member’s existing life insurance policy contract. Emergency loans, on the other hand, are intended to help government personnel, as well as elderly and disabled retirees, in the event of natural disasters.

From 2021 until May 15, 2022, the pension fund distributed PHP175 million to 1,504 members through the GFAL Educational Loan program. In view of the economic repercussions of the pandemic, GSIS developed this initiative in response to the government’s request for credit support for education. It’s a pay-as-you-go loan program for children or relatives of active GSIS members who want to go to college. The maximum amount that can be borrowed per academic year for tuition and other school fees is PHP100,000. The rate of interest is only 8%. Under the scheme, a GSIS member may suggest up to two student-beneficiaries.

Meanwhile, 56,110 pensioners benefited from the PHP4.6 billion issued by GSIS under the Enhanced Pension Loan from January 2021 to May 15, 2022. From the sum of P204 million paid by GSIS in the same period, another 7,903 seniors received Pensioners’ Emergency Loans.

GSIS offered inactive members the opportunity to modify their loans. GSIS remitted a total of PHP203 million to 1,498 inactive members under the Program for Restructuring and Repayment of Debts (PRRD).

For inactive GSIS members with outstanding loans, PRRD is a one-time condonation and restructuring procedure. GSIS members who are no longer employed by the government and are unable to repay their outstanding loan balances in full may apply for PRRD.

“We overcame the difficulties and welcomed the challenges posed by the pandemic so that we could provide our clients’ basic demands of ease, protection, and safety.” We urge our members and retirees to take advantage of GSIS loan options to help with a variety of needs. They are also assisting GSIS in maintaining its actuarial life, allowing us to pay our members and retirees their benefits as and when they become due,” Macasaet pleaded.

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