GSIS announces loan program with 6% interest rate

The Government Service Insurance System (GSIS) on Sunday announced its Multi-Purpose Loan Flex (MPL Flex) Program, which allows public school teachers and other members to avail of loans with interest rates starting from 6%.

In a statement, GSIS said the MPL Flex allows members with a one-month premium contribution to apply for loans with interest rates starting from 6%, under a repayment term of up to 15 years from the previous 10-year limit, with no pre-termination fees for full repayments before the end of the loan.

“[This provides an] important lifeline to teachers to improve their financial capacity by using the loan for their various needs including capital to start their own business,” GSIS president and general manager Jose Arnulfo “Wick” Veloso said.

Borrowers will be able to customize their term loans based on their needs and financial situation, with first-time beneficiaries also given a waiver on surcharges.

Among those eligible for the program are active and special members not on unpaid leave during the application period, have at least one premium payment in the past six months, and have no pending administrative charge.

Members can apply through the GSIS Touch mobile application, the GSIS Wireless Automated Processing System kiosks, or in person at GSIS branches. The loan proceeds will be credited to the member’s eCard account within one business day.

Just last week the Department of Education (DepEd) said it is in the process of addressing the reported deductions from the salaries of teachers for loans with the GSIS, but such payments have yet to be reflected.

DepEd Undersecretary and spokesperson Michael Poa said the department is now working closely with the GSIS to reconcile the databases of both agencies to ensure that payments are reflected with the state insurer.

Under its charter, the GSIS is mandated to ensure that its members are insured against the occurrence of certain contingencies in exchange for their monthly premium contributions. They are entitled to benefits such as life insurance, separation or retirement benefits, and disability benefits.

It is also the administrator of the General Insurance Fund, providing insurance coverage to government assets and properties that have government-insurable interests. — BM, GMA Integrated News