Guide on GSIS Pension Loan 2026 Features & Application Process
GSIS PENSION LOAN 2026 – Here is a guide on this offer of the Government Service Insurance System that provides access to extra cash for pensioners.
In the Philippines, a huge part of the populace of senior citizens is composed of Filipinos who are pensioners of the Government Service Insurance System or more commonly called as GSIS. It is one of the loan-providing social insurance giants that is in the service of the Filipino people for decades now.
The Government Service Insurance System is operating in the Philippines since 1937. It was first established by virtue of the Commonwealth Act No. 186. It was made to build social security and insurance coverage to employees of the government. In times of old age, the GSIS members has several options to turn to — the GSIS Pension Loan being one of them.
The GSIS Retirement Benefits are undeniably the things that encourage every member of the social insurance giant. Actually, aside from the monthly pension, the pensioners of the state-run entity also has an access to extra cash through the GSIS Pension Loan. Although it is unwanted, there might be inevitable cases when the monthly pension won’t be enough to cover up the needs of the pensioner so the social insurance giant made sure that they have another option.
The Government Service Insurance System has opened its loans to pensioners who have no 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 and those who have chosen one of the following retirement programs:
- Republic Act No. 660
- Presidential Decree No. 1146
- Republic Act No. 8291
Under the GSIS Pension Loan offer, there are only a few eligibility criteria set by the social insurance giant. The pensioner should meet the following qualifications to be eligible to apply for the loan offer:
- 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)
The Government Service Insurance System has set a maximum loanable amount of an equivalent of up to six (6) times of the Basic Monthly Pension or BMP not exceeding to Php 100,000. The age of the pensioner is actually a factor with regards to the borrowing amount.
The Government Service Insurance System allows the member-pensioners to borrow a lower amount from the maximum amount that their age suggests. With regards to the interest rate, the social insurance giant applies a 10% interest rate under the loan offer.
The loan is payable for up to 24 months. In case the pensioner dies during the repayment period of the loan, “the outstanding balance in the Pension Loan will not be deducted from funeral and survivorship benefits” as the loan is covered by a loan redemption insurance.
According to GSIS, the loan application processing may be done within the day of the filing of the loan application. Once the loan application is approved, the amount will be credited to your account within three (3) to five (5) working days from the application.
If you or a someone you know wants to apply for the loan offer, it is best to know that there are a few GSIS Pension Loan requirements that the application should prepare.