Guide on GSIS MPL Loanable Amount for Members
GSIS MPL – Here is a guide on how much you may borrow under the Multi-Purpose Loan offer of the Government Service Insurance System.
In the Philippines, millions of Filipinos are members of the Government Service Insurance System or more popularly called GSIS. It is a social insurance giant in the country which is under the Philippine government.
Every month, members of the GSIS pay for a monthly contribution or savings to the state-run social insurance institution. It is usually done through payroll deductions.
The accumulated contributions of a GSIS member may qualify a member to the benefits and loan offers of the social insurance giant. One of the loan offers is the Multi-Purpose Loan.
Also called the GSIS MPL, the Multi-Purpose Loan can consolidate several existing loans of a member and provide financial solutions. How much a member may borrow under the loan offer?
Under the GSIS MPL, a qualified member may avail up to 14x of his/her basic monthly salary. The maximum loanable amount of a member depends on the Period with Paid Premiums or PPP of the member and his/her computed Basic Monthly Salary (BMS).
According to the Government Service Insurance System, the option of the member with regards to the loan amount and the corresponding term is dependent on his/her PPP. In case the member failed to indicate the preferred loan amount, it shall mean that the member is applying for the maximum loan amount for which the member is qualified for.
With regards to the consolidation of the loan, the GSIS will compute the outstanding balances of all the existing loans including the surcharges to be waived. The computation includes the balances up to the date of the granting of the MPL.
If the member-borrower has an existing Emergency Loan accounts in arrears or in default, it will be deducted from the proceeds of the Multi-Purpose Loan offer. With regards to the interest rate, here are the basis:
- 8% interest rate per annum for members with PPP of less than 3 years
- 7% interest rate per annum for members with PPP at least 3 years
In applying for the loan offer, there are requirements for the GSIS Multi-Purpose Loan application. There are also several options with regards to the application process.
