September 24, 2024 | 12:00am
MANILA, Philippines — The Government Service Insurance System (GSIS) has released P208 billion in loans for the first year of its enhanced lending program for state workers.
In a statement, GSIS president and general manager Wick Veloso said the pension fund for state workers has so far lent P208.17 billion since the launch of its Multi Purpose Loan (MPL) Flex in September last year.
The loans released have benefited some 790,514 government borrowers in a span of one year.
The MPL Flex stands out in the market for offering an interest rate of six percent and a longer and more flexible payment period, ranging from one to 15 years.
It also allows government employees who have served for only one month to apply for a loan. State workers can borrow up to 14 times their basic monthly salary, with a maximum limit of P5 million.
“Loan proceeds can be used as seed capital for small businesses, providing an additional stream of income,” Veloso said.
“This is also a vital resource in helping them achieve their financial goals while ensuring overall well-being,” he said.
Eligible for the program are active and special GSIS members who are not on unpaid leave and have made at least one month’s premium payment.
Members’ net take-home pay, after the deduction of all monthly obligations, must meet or exceed the General Appropriations Act’s minimum requirement of P5,000.
Members may apply through the GSIS Touch mobile application or the GSIS Wireless Automated Processing System kiosks for a quick and paperless process.
Approved loans are credited to the members’ e-card account within a day after approval of the authorized agency officer of the borrower’s agency.
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