The Government Service Insurance System (GSIS) on Monday launched a loan buyout program offering government workers a chance to consolidate their debts at interest rates as low as 6 percent.
GSIS president and general manager Jose Arnulfo Veloso emphasized the pension fund’s mission to shield members from excessive interest rates in the lending market.
“Through the MPL Max, we are throwing a lifeline to our members who are weighed down by debt,” Veloso said.
“This goes beyond consolidating loans – we are helping our members rebuild their lives by creating a clear path to financial recovery and stability,” he said.
The MPL Max program starts with a memorandum of agreement between the GSIS and the agency. Once signed, employees can combine all their loans into a single loan that offers lower interest rates and extended payment terms.
MPL Max offers qualified borrowers the opportunity to borrow up to 19 times their salary or P5 million, whichever is lower, with payment terms extending up to 10 years.
The GSIS said it eliminated surcharges on existing GSIS loans and waived all service fees. The program also includes loan insurance coverage at no additional cost, with the flexibility to pre-terminate without penalties.
Members should have paid at least one month of premium contributions within the past six months, have no existing multi-purpose loans and no defaulted GSIS financial assistance loans to avail of the loan.
They should also be free of administrative or criminal cases and have sufficient net take-home pay as required by the General Appropriations Act.
Required documents include the application form, borrower loan agreement and loan voucher or other certified documents showing existing loans.
Also needed are statement of account from lending institutions with the borrower’s confirmation of correctness, along with a copy of the ID of the lending institution’s authorized representative who will claim the check from GSIS and latest pay slip.
