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GSIS offers low-interest loan, waived surcharges

State-run Government Service Insurance System (GSIS) has launched a loan facility that offers low interest, enhanced loan consolidation feature, longer payment term and one-time waiver of surcharges.

Rolando Ledesma Macasaet, GSIS president and general manager, said the new loan program gives borrowers an additional credit line that will also help them consolidate and pay their outstanding GSIS loan balances.

GSIS logo (Courtesy of

Dubbed GSIS Multipurpose Loan (GSIS MPL), borrowers may now apply for up to 14-times their basic monthly salary but not to exceed P3 million. First-time availees will enjoy waived surcharges on their outstanding loan balance.

“GSIS MPL offers our members affordable payment terms, especially those who have reached their borrowing limit and have been unable to pay their GSIS loans,” Macasaet said in a statement.

Qualified to apply for MPL are active and special GSIS members who have paid at least three months of premiums; are not on leave of absence without pay; and have no pending administrative or criminal case.

They should also have no arrears under the GSIS Financial Assistance Loan (GFAL) or GSIS housing loan, and are working in agencies with existing Memorandum of Agreement (MOA) with GSIS. 

In addition, they must not be tagged as suspended by their respective agencies and have a net take-home pay not lower than the amount required under the General Appropriations Act after all monthly obligations have been deducted. Their agency must not also be on suspended status.

“We urge government agencies to forge a memorandum of agreement with GSIS so that their employees may  enjoy MPL’s benefits in no time,” the pension fund chief said.  

MPL’s interest rate is 7.0 percent per annum computed in advance for members who have at least three years of paid premium.

For members whose paid premium is less than three years and for special members with at least three months of total length of service, MPL’s interest rate is 8.0 percent per annum computed in advance.

MPL is payable in monthly instalments from two to seven years depending on a member’s paid premium and status of employment.

But with the implementation of GSIS MPL, Macasaet said their Enhanced Conso-loan Plus will be phased out.

“All members with Conso-loan applications that have not been approved by the concerned Agency Authorized Officers (AAOs) on September 30, 2020 will be advised to reapply for GSIS MPL,” the pension fund said.

Source: Manila Bulletin (

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