GSIS multi-purpose loan payable for up to 10 years beginning 2022

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Metro Manila (CNN Philippines, December 7) – The Government Service Insurance System (GSIS) will extend the maximum period of loan payment to 10 years from the current seven, effective first quarter of 2022.

“Baka ma-implement na namin nang January or February. Basta po first quarter next year,” Nora Malubay, GSIS core business sector executive vice president, told CNN Philippines’ Newsroom Ngayon.

[Translation: We may be able to implement it by January or February. It should be anytime within the first quarter of next year.]

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

[Translation: This will bring a huge relief because many have requested for term extension.]

The multi-purpose loan (MPL) program has an interest rate of 7-8%, and qualified borrowers may apply for a loan up to 14 times their basic monthly salary, capped at a maximum of ₱3 million. Currently, the loan is payable in monthly installments 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 availing it for the first time may enjoy waived surcharges on their outstanding loan balance. This means the program prevents penalties incurred by members for unpaid loans from ballooning and eating up their retirement and other benefits, GSIS said.

Currently, only those with home emergency loan program accounts that are consolidated under MPL may pay the loan for up to 10 years, according to the GSIS.