GSIS: Record P289 billion disbursed for multi-purpose loan programs

The Government Service Insurance System (GSIS) on Saturday announced it has disbursed a record P289 billion for its Multi-Purpose Loan (MPL) programs, which provided financial support to more than 1.2 million government employees nationwide.

In a statement, the GSIS said it has released P282 billion to 1,049,246 members under its MPL Flex program since its launch in September.

The pension fund said the amount of disbursements for MPL Flex grew by 35.5% from P208.17 billion in its first year of implementation.

MPL Flex consolidates all the existing loans of a member, except the housing loan. It gives an additional fund for members to use for any purpose.

GSIS said that another P7.2 billion was extended to 197,675 members under MPL Lite.

MPL Lite is a short-term loan program that will supplement the immediate needs of GSIS' active members.

The pension fund said that MPL Flex, in just 16 months, has become a "cornerstone" of GSIS's financial assistance initiatives—offering government employees loans of up to 14 times their monthly base pay, capped at P5 million, with a 6% annual interest rate and repayment terms extending to 15 years.

"The rapid growth of MPL Flex in less than two years demonstrates both the program's effectiveness and the significant demand for flexible financial solutions among our members," said GSIS president and general manager Wick Veloso.

The GSIS' loan disbursement performance was backed by a robust financial standing.

The pension fund said its total assets grew 8% to P1.8 trillion, while its net income from operations jumped 58% to P120 billion.

Its overall revenues, likewise, reached P258 billion, marking a 27% increase from the previous year's P204 billion.

"Our strong financial performance strengthens our capacity to serve our members through accessible loan programs while securing the long-term sustainability of their benefits," said Veloso. — VDV, GMA Integrated News