GSIS launches loan buyout program to ease debt burden

THE GOVERNMENT Service Insurance System (GSIS) has launched a loan buyout program aimed at helping government employees consolidate their debts and ease financial burdens.

The initiative offers interest rates as low as 6 percent and allows members to merge multiple loans into a single, lower-interest plan with extended payment terms.

GSIS President and General Manager Arnulfo Veloso, in a news release Monday, said the program is designed to protect public sector workers from high-interest lending options.

"Through the MPL Max, we are throwing a lifeline to our members who are weighed down by debt," he 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 stressed.

The program requires a memorandum of agreement between GSIS and the member’s agency.

Once finalized, employees can borrow up to 19 times their salary or PHP5 million, whichever is lower, with repayment terms of up to 10 years.

MPL Max requires no surcharges on existing GSIS loans; no service fees and free loan insurance; penalty-free pre-termination option; and direct payment to lending institutions for easier debt settlement.

To qualify, members must have:

- At least one premium payment in the last six months

- No existing multi-purpose loans or defaulted GSIS Financial Assistance Loans

- No administrative or criminal cases

- Sufficient net take-home pay, as required by the General Appropriations Act.

Applicants must submit an application form, loan agreement, certified loan documents, and a statement of account from lending institutions, along with a valid ID and the latest pay slip.

To streamline processing, GSIS requires applicants to schedule appointments via its GSIS Touch platform.

Veloso assured that this system ensures efficient handling of applications.

"Our appointment system guarantees that each member receives proper attention when applying for this financial relief program," he said.

Once approved, GSIS will directly settle outstanding loans with lending institutions.

Any remaining funds will be credited to the member’s GSIS eCard or ATM account, with monthly payments automatically deducted from their salary. (Wilnard Bacelonia)