State-pension fund Government Service Insurance System (GSIS) has increased the credit limit and extended the repayment terms of its improved consolidated loan program starting July 1.
Under the Enhanced Conso-Loan Plus Program, members who have paid premium contributions of at least 15 years may obtain a loan equivalent to 12 times their salary, while those with at least 25 years in premium contributions will be eligible for a loan worth 14 times their salary.
Previously, the credit limit for these GSIS members was only 10 times their salary.
The new loan program will also extend the maximum payment terms to 10 years from the previous term of six years, for those members with at least 10 years of premium contributions.
Those qualified under the program are active GSIS members, whether permanent or nonpermanent, who have no pending administrative or criminal case, are not on leave of absence without pay and with a net take-home pay of P3,000 mandated under the General Appropriations Act.
Special members, such as prosecutors and members of the judiciary and constitutional commissions, are also qualified to avail themselves of the loan equivalent to 10 times their basic salary.
To standardize payment schemes and due dates, the first amortization due date for loans granted on or before the 23rd of the month is on the 10th of the following month from the date the loan was granted.
For loans granted after the 23rd day of the month, the first due date is on the 10th day of the second month after the grant of the loan.