Guide on GSIS Pension Loan 2025 Features & Application Process
GSIS PENSION LOAN 2025 – Here are the details that pensioners of the Government Service Insurance System should know.
Many retirees in the Philippines are pensioners of the Government Service Insurance System. More popularly called GSIS, it is one of the social insurance giants in the country that provides several benefit and loan offers for its members and pensioners.
Aside from the GSIS Enhanced Conso-Loan Plus, the social insurance giant also has the GSIS Pension Loan that was crafted for its pensioners — a ready turn-to in times of financial needs. Truth be told that there might be instances when the monthly pension may not be enough.
The Pension Loan offer of the social insurance giant is open to old-age pensioners under any of the following retirement programs without outstanding service loans being amortized under the Choice of Loan Amortization Schedule for Pensioners (CLASP) at the time of the filing of the loan application:
- Republic Act No. 660
- Presidential Decree No. 1146
- Republic Act No. 8291
There are only a few eligibility criteria to qualify for the GSIS Pension Loan offer. Here are the qualifications:
- must be receiving a regular monthly pension for at least one month
- must have no existing service loans under the Choice of Loan Amortization Schedule for Pensioners (CLASP) or the GSIS Program of Restructuring and Repayment of Debts (PRRD)
- with a resulting net monthly pension after the loan deduction must be at least 25% of your Basic Monthly Pension (BMP)
Under the loan offer, a pensioner may borrow an equivalent of up to six (6) times of the Basic Monthly Pension or BMP not exceeding to Php 100,000. The loanable amount may vary depending on the age of the pensioner-borrower. Here’s a guide:
According to the social insurance giant, the borrower may opt to borrow a lower amount compared to what they are allowed to. The loan principal as well as the interest and the other charges are payable in 24 monthly amortizations.
GSIS implements a 10% interest rate under the loan offer for pensioners. The loan is covered by a loan redemption insurance. Thus, if the pensioner-borrower dies amid the repayment of the loan, “the outstanding balance in the Pension Loan will not be deducted from funeral and survivorship benefits”.
The loan may be processed within the day of the filing of the loan application. Once approved, it will be credited to your account within three (3) to five (5) working days from the application.
To apply for the loan offer, there are GSIS Pension Loan requirements that a pensioner-borrower needs to prepare.