THE Government Service Insurance System (GSIS) has launched a loan consolidation program offering relief for indebted government workers.
“Through the MPL (Multi-Purpose Loan) max, we are throwing a lifeline to our members who are weighed down by debt. This goes beyond consolidating loans — we are helping our members rebuild their lives by creating a clear path to financial recovery and stability,” GSIS President and General Manager Jose Arnulfo A. Veloso said in a statement on Monday.
Under the program, GSIS will sign a memorandum of agreement with government agencies, whose employees will be able to combine all their loans into a single loan that offers lower interest rates and extended payment terms.
Qualified borrowers may borrow up to 19 times their salary or P5 million, whichever is lower, with payment terms extending up to 10 years.
Loan insurance coverage is also included in the program at no additional cost, as well as the option to pre-terminate without penalty.
The GSIS also eliminated surcharges on existing GSIS loans and waived all service fees.
To qualify for MPL max, members must have paid at least one month of premium contributions within the past six months, have no activemulti-purpose loans, and have not defaulted on any GSIS Financial Assistance Loans.
“They must also be free of administrative or criminal cases, and have sufficient net take-home pay as required by the General Appropriations Act,” GSIS added. — Aaron Michael C. Sy