THE Government Service Insurance System (GSIS) will open on April 23 the Multi-purpose Loan (MPL) Plus program that offers a credit limit of P5 million. It also extended the maximum payment term to 10 years and relaxed the borrowers’ eligibility requirements.
“We enhanced the MPL program based on the feedback from members in the previous MPL so we can offer a loan program that will best suit their needs,” President and General Manager (PGM) Rolando L. Macasaet was quoted in a statement as saying. He added the GSIS hopes it can help more members through the MPL Plus.
Under MPL Plus, the credit limit has been raised from P3 million. The actual amount will depend on the borrowers’ paid premiums and monthly salary.
The loan term has likewise been extended from seven years to 10 years. Qualified for a 10-year loan term are: permanent employees who have at least 10 years of premium payments; members with existing home emergency loan program account; and, special members under agencies with memoranda of agreement on MPL with GSIS.
Non-permanent government personnel who have at least 15 years of premium contributions, on the other hand, may pay for the loan in nine years. Previously, their maximum loan term was only five years.
The uniform interest rate of 7 percent computed in advance will be applied to all borrowers. In the previous MPL, members with less than three years of paid premiums were charged 8 percent interest, while those with at least three years of premiums were charged 7 percent.
“We will keep helping our members put their finances in order,” Macasaet was quoted as saying in the statement. “From the start, the objective of our loan program is to give our government workers access to cheap credit.”
Moreover, GSIS relaxed the eligibility conditions of prospective applicants. Previously, members with arrearages in their GSIS Financial Assistance Loan and housing loan are not qualified to avail of the MPL. Now, under MPL Plus, they will be allowed to apply, but their arrearages under GFAL will be deducted from the proceeds of their loan.
Qualified to apply for MPL Plus are regular and special GSIS members who have paid at least three months of premiums; are not on leave of absence without pay at the time of application; and have no pending administrative or criminal case. In addition, they should not belong to an agency which has been tagged as suspended, and their net take-home pay should not go lower than the amount required under the General Appropriations Act after all monthly obligations have been deducted.
Members may apply for the loan via the GSIS’s mobile app; wireless automated processing system kiosks located nationwide; e-mail; electronic GSIS Member Online; or, drop boxes located in all GSIS offices.
“For the safety of both our clients and employees, we will only accept over-the-counter or in-person filing if the GWAPS kiosk is offline, or if the applicant has lost or defective electronic card or Unified Multipurpose Identification card; has unreadable biometrics; or is a temporary eCard holder,” Macasaet said.
GSIS said it has disbursed P106 billion to 444,425 MPL availees last year.