GSIS multipurpose loan with 10-year payable

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The Government Service Insurance System (GSIS) will increase the maximum loan repayment period from seven to ten years beginning in the first quarter of 2022.

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Photo: PhilStar

In a report interview with CNN Philippines in Newsroom Ngayon, the GSIS core business sector executive vice president, Nora Malubay said that they may be able to implement it by January or February. It should be anytime within the first quarter of next year.

“Baka ma-implement na namin nang January or February. Basta po first quarter next year,” Malubay said.

“Napakalaki pong kaginhawaan niyan dahil po marami nga pong nakiusap na sana po i-extend yung term,” she added.

The multi-purpose loan (MPL) program has an interest rate of 7-8 percent, and qualified borrowers can apply for a loan of up to 14 times their basic monthly salary, with a maximum loan amount of $3 million. The loan is currently payable in monthly installments ranging from two to seven years, depending on a member’s premium contribution and employment status.

The MPL program consolidates all GSIS service loans, and those who use it for the first time may have surcharges waived on their outstanding loan balance. This means that the program prevents members’ penalties for unpaid loans from ballooning and eating up their retirement and other benefits, according to GSIS.

According to the GSIS, only those with home emergency loan program accounts that are consolidated under MPL can currently pay the loan for up to ten years.