Guide to GSIS Loan in the Philippines

The routine nature of the work profile makes life unexciting and reduces your scopes of acquiring new skills. Indeed, government employment remuneration might not be on par with private sector employment for a talented one. Getting additional revenue sources through second employment or business is not possible. You have no choice or privilege in deciding the place of work as well. One may have to live in a distant location far away from his family and responsibilities as a family head.

Yet, the Filipinos yearn for government jobs and strive hard for it, irrespective of the recruitment process’s severity. What could be the reason? The answer is the unmatched benefits and the social security a government job offers through the Government Service Insurance System.

About Government Service Insurance System (GSIS)

The Government Service Insurance System is a government-owned and controlled corporation of the Philippines that works exclusively for the benefit of Government employees. All government employees are de facto members of this system, and their monthly contributions create a consolidated pension fund. GSIS manages this fund and secures its members’ future through various social security benefits such as compulsory / optional insurance coverage, retirement, separation, disability, unemployment, or survivorship benefits. GSIS acts as a helping hand for the members during their financial exigencies by providing affordable loans against their contributions.

With 42 branch offices, 14 extension offices, and 58 service desks, the GSIS has nationwide coverage. Also, it uses the Unified Multi-purpose ID system (UMID) for its identification and transaction processes. All these features make the GSIS easily accessible for elderly pensioners, who constitute a significant share of its members, which makes their lives more comfortable.

How to Become a GSIS Member?

The Government Service Insurance Act of 1997 defines the membership eligibility conditions as the following: “Membership in the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory retirement age, irrespective of employment status, except members of the Armed Forces of the Philippines and the Philippine National Police, subject to the condition that they must settle first their financial obligation with the GSIS, and contractual who have no employer and employee relationship with the agencies they serve.”

Under this category, the regular members have to make a monthly contribution of 21% of their monthly compensation to the fund. The employee share for the monthly contribution is 9%, and the remaining 12% has to be paid by the employer.

Members of judiciary and constitutional commissions, prosecutors, and similar rank employments have separate retirement laws. They can enroll in the GSIS as “special members” with a monthly contribution of 6%, shared equally 3% by the member and his employer. We offer you a detailed guide to GSIS loans, by type and purpose.

What is the GSIS Multi-Purpose Loan and its Purpose

The GSIS salary loan, now referred to under the Multi-Purpose Loan (MPL) and MPL Plus programs, is designed to assist government employees who are active GSIS members. This loan allows members to borrow a certain multiple of their basic monthly salary, with loan amounts and terms depending on factors like the number of years in service and the premiums paid.

The multi-purpose loan (MPL) granted by the GSIS is a financial tool that helps the GSIS members cover their existing GSIS debts by providing them with an additional credit line. MPL consolidates the loans that the member is unable to pay and liquidates their due balances. In the end, the member is left with one loan, which usually has less strict terms, lower interest rates and smaller payments.

The GSIS Multi-Purpose Loan (MPL) program allows members to borrow up to 14 times their monthly salary, with a maximum loan amount of PHP 5 million. This loan is designed to help members consolidate and pay off existing GSIS loans, thereby preventing unpaid loans from impacting their retirement benefits.

Interest Rates: For members with at least three years of paid premiums, the interest rate is 7% per annum. For those with less than three years of paid premiums, the rate is 8% per annum.

Loan Duration: The loan term ranges from 2 to 10 years, depending on the member’s paid premiums and employment status. Permanent employees with at least 10 years of premium payments and those with existing Home Emergency Loan Program (HELP) accounts can avail of the 10-year loan term.

This loan program helps members manage their finances by consolidating outstanding balances from various GSIS loan products, such as Salary Loans, Enhanced Salary Loans, and Educational Assistance Loans.

Who is Eligible for the GSIS Multi-Purpose Loan?

MPL is exclusive to GSIS regular and special members. The latter include constitutional commissioners, judges, etc. To be eligible for a loan, they still have to match the following criteria:

• To have made payments for at least three months
• To be an active paid member (not on a leave)
• To have no open criminal or administrative cases
• To belong to a agency with a status other that ‘Suspended’ and a memorandum of agreement on MPL
• To have a net pay exceeding the sum required under the General Appropriations Act upon all mandatory deductions.

GSIS Salary Loan Requirements

Regular and special GSIS members who have paid at least three months of premiums, are not on leave of absence without pay at the time of application, and have no pending administrative or criminal case. The applicant’s net take-home pay should meet the minimum requirement under the General Appropriations Act.

GSIS doesn’t require its members to provide an overload of paperwork to apply for an MPL loan. The only documents you will need are:

• A filled-in application form (1) and
• A photocopy of the Unified Multi-Purpose ID (UMID) card or eCard.

How to Apply for a Multi-Purpose Loan Online and Offline?

There are four ways to apply for a GSIS MPL. If you want to apply at your convenience, you can apply for a multi-purpose loan online. Here are the four processes, just follow the step-by-step procedure:

Online via eGSISMO:

• Log in to your personal account.
• Go to Loans Application and select Multi-Purpose Loan. Choose whether you want to request a new one or would like to extend the existing one.
• Upload your picture holding either your UMID card or your temporary. If you don’t have the UMID or eCard at hand, 2 valid IDs will do. The images should be JPEGs or PDFs.
• Read the Loan Agreement, confirm it, and click Save.

Via email

• Fill in the application form.
• Take a picture of you holding either your UMID or eCard. You can also present 2 valid IDs if your UMID and eCard are not available. Make sure to take a shot of the front and the back of your IDs.
• Convert your paperwork into JPEG or PDF files.
• Email your files to the relevant GSIS branch. You can find the list of GSIS offices’ emails in the Contact Us (2) section on the official website.

Via the GSIS Wireless Automated Processing System (GWAPS) Kiosk

• Go to the nearest GWAPS kiosk.
• Put your UMID/eCard in the card reader and touch the biometrics scanner with your finger. Your data will then appear on screen.
• Press the Loan Windows and go to Multi-Purpose Loan. The system will show you the estimated loan terms. Now you may modify the loan amount or the payment term as per your liking.
• If you agree with the terms and wish to proceed with your application, put the same finger on the scanner.

Once you submit your application, you will have to wait for an email or a text message from GSIS regarding the loan decision and the approximate calculation.

What is the loanable Amount?

The maximum amount GSIS can loan a member is calculated considering the member’s Period with Paid Premium (PPP), Basic Monthly Salary (BMS), and the employment status.

All members are entitled to receive 14x of their BMS, however the maximum loanable amount should not exceed PHP 3 mln. While submitting the application, a GSIS member should indicate a preferable loan sum corresponding to their PPP. If they fail to do that, GSIS will take it if they’d applied for the maximum amount they are qualified for.

GSIS Loan Table

For your convenience, we have summarized the principle of calculating the maximum loanable amount in the GSIS loan table below:

PPP	Maximum Loanable Amount
	Permanent Without Term/Tenure	Permanent and Non-permanent With Term/Tenure
3 -19  months	1 x BMS	—
20 months to less than 10 years	3 x BMS	3 x BMS
3 years to less than 5 years	4 x BMS	4 x BMS
5 years to less than 10 years	7 x BMS	7 x BMS
10 years to less than 15 years	10 x BMS	10 x BMS
15 years and above	14 x BMS	14 x BMS

What is the GSIS Multi-Purpose Loan Term?

The loan terms are based on the employment status, PPP, and BMS. The terms for the regular members are outlined in the loan table below:

PPP	Loan Terms
	Permanent Without Term/Tenure	Permanent and Non-permanent With Term/Tenure
3-19 months	3 years	—
20 months to less than 3 years	5 years	2 years
3 years to less than 5 years	5 years	2 years
5 years to less than 10 years	5 years	2 years
10 years to less than 15 years	7 years	5 years
15 years and above		5 years

Note that special members have a maximum loan term of 7 years.

What are the Interest Rates for GSIS Multi-Purpose Loan?

GSIS MPL annual interest rates also depend on the period that a member has chosen to pay Premiums:

• 8% in cases when a PPP is less than 3 years
• 7% in cases when a PPP is over 3 years.

GSIS Multi-Purpose Loan Plus (GSIS MPL PLUS)

GSIS MPL Plus (3) is an upgrade of the regular MPL program based on the member’s feedback and suggestions. As a result, the new initiative introduced in April 2022 manages to offer more flexibility and better fulfills the needs of the GSIS members.

Just as in the case of the classic MPL, your employment status, PPP, and BMS will determine how much and for how long you’ll be able to borrow within MPL Plus. Take a look at the tables below to determine your potential maximum loan sum and term of payment:

PPP	Maximum Loanable Amount
	Permanent Without Term/Tenure	Permanent and Non-permanent With Term/Tenure
3 -19  months	1 x BMS	—
20 months to less than 10 years	3 x BMS	3 x BMS
3 years to less than 5 years	4 x BMS	4 x BMS
5 years to less than 10 years	7 x BMS	7 x BMS
10 years to less than 15 years	10 x BMS	10 x BMS
15 years and above	14 x BMS	14 x BMS

 

PPP	Loan Terms
	Permanent Without Term/Tenure	Permanent and Non-permanent With Term/Tenure
3-19 months	3 years	—
20 months to less than 3 years	5 years
3 years to less than 5 years		2 years
5 years to less than 10 years	10 years
10 years to less than 15 years		5 years
15 years and above		9 years

Note that the conditions of the program have changed. Here are some differences between MPL and MPL Plus:

• The credit limit has been increased up to PHP 5 mln, and the maximum payment term for permanent members ― up to 10 years.
• The 8% rate has been canceled, and the 7% interest was made applicable to all borrowers. It is calculated and added in advance.
• GSIS members with arrearages in the housing loan are now qualified to apply.

What are the Differences with GSIS MPL?

GISIS MPL Plus (3) is the enhanced MPL program that gives active members an additional credit line that will help them consolidate and settle their outstanding GSIS loan balances. The basis will depend on the borrower’s employment status, periods with paid premiums, and basic monthly salary.

The MPL program was enhanced based on the member’s feedback, resulting in offering a program that best suits their needs. The difference between GSIS MPL Plus from GSIS MPL includes the following:

• Credit limit from PHP3 million to PHP5 million
• A uniform interest rate of 7 percent computed in advance will be applied to all borrowers
• Relaxed eligibility conditions to all prospective applicants. Previously, members with arrearages in their GSIS Financial Assistance Loan (GFAL) and housing loan are not qualified to avail of MPL. Now they can avail of MPL but their arrearages under GFAL will be deducted from the proceeds of their loan.
• First-time availees will have a one-time waiver on the outstanding surcharges on due and demandable GSIS loan accounts.

Learn more about:
Pag-IBIG Loan Guide in the Philippines

Other Types of GSIS Loans

GSIS loans offer affordable loans with minimal formalities against member contributions and help them avoid loan sharks in an acute financial crisis. People are often interested in GSIS loan inquiry. Some of the popular loan program that GSIS offers are the following.

👉 GSIS Enhanced Conso Loan plus

The Consolidated Loan GSIS (Conso-loan) enables one to consolidate all his existing loans and take advantage of penalty or surcharge waivers.
The loan has a minimum eligibility requirement of 20 months member contribution and the amount of PHP 15,000.
The  amount and conditions vary with member contributions. For instance, a member with 20 months contribution can get a loan of 3 months salary with a repayment window of 6 years. Whereas a member with 25 years contribution can draw up to 14 months salary for 10 years.
And how long is the processing of GSIS Conso loan? Usually, GSIS Conso-loans have a processing time of 3 days. The annual interest rate for the loan is 12%.

👉 GSIS Emergency Loan (or  Calamity Loan)

The GSIS Emergency Loan provides financial assistance for its members to recover from the hardships of calamities or disasters. An active member, who lives or works in a calamity-stricken area, can get an insured loan of up to PHP 20,000 for 36 months at an interest rate of 6 %. As a mitigation strategy for the pandemic induced financial logjam, the Covid-19 Emergency Loan of PHP 40,000 and Computer Loan of PHP 30,000 is available to the members. To avail of the GSIS Calamity Loan 2020, the borrower should have made at least 3 premium payments between September 2019 to February 2020.

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👉 GSIS Pension Loan

A pensioner with no existing loans can get a GSIS Pension Loan of up to PHP 100,000 for an annual interest rate of 10% for 24 months. The loan conditions vary significantly based on your age and monthly pension. Pensioners who live in calamity-hit areas can opt for a Pensioners’ Emergency Loan that offers financial support of PHP 20,000 for 3 years at an annual interest of 6%.

👉 GSIS Policy Loan

Under this plan, an active GSIS member, who has paid at least 1 year of insurance premium, can apply for a loan equal to his life insurance policy’s cash value for an interest rate of 8%. The borrower can repay it as monthly payments or deduct the loan from the existing life insurance policy contract. The loan amount varies with the type of policy. For the Enhanced Life Policy (ELP), one can get up to 70% of the policies accumulated termination value. But for the Life Endowment Policy (LEP), it is limited to 50% cash value.

👉 GSIS Housing Loan

GSIS does not provide any housing loans directly. Instead, it works through partner entities such as Pag-IBIG or GSIS Family Bank.
GSIS has a credit facility agreement with Pag-IBIG, the key shelter agency, to finance GSIS members and pensioners’ housing loans. GSIS has already made an initial allocation of PHP 5 million to HDMF or Pag-IBIG to ensure the necessary funds for issuing housing loans for the needy GSIS members.
The loan amount and conditions vary based on Pag-IBIG loan eligibility criteria.

👉 GFAL Loan

The GSIS Financial Assistance Loan to DepEd Personnel (GFAL) enables thousands of DepEd members to refinance their existing loans with Private Lending institutions in an affordable way. Both teaching and non-teaching DepEd members can get a loan up to PHP 500,000 at an annual interest rate of 6% with a repayment period of 6 years. You can calculate the payment more accurately using GFAL GSIS loan calculator on the official website.
The scheme is described in detail in the GFAL loan table. It enables people to set aside the financial worries of the monthly payment and allows them to retire with all benefits for a secure future.

👉 GSIS Enhanced Salary Loan

Sometimes it is also called Restructured salary loan enhanced. With this salary loan, one can get a loan with an extended repayment period of 10 years for an annual interest rate of 12%. The loan amount depends mainly on member contribution. A GSIS member with 15 years of paid premiums can borrow up to 12 times his monthly payment. One can get a 14 months salary as a loan if he has a complete premium payment of 25 years.

Need Quick Cash? Apply for a quick loan with just 1 government valid ID. Calculate your pre-approved loan amount:

General Requirements for GSIS Loans

Each loan has its own set of eligibility requirements. But if you want to know how to loan in GSIS, the standard loan requirements for all categories of loans offered by GSIS are the following:

• The applicant should be an active member of GSIS;
• No paused payments to the GSIS;
• At the time of loan application, the applicant should not be on leave of absence without pay;
• There shouldn’t be any administrative or criminal cases within the 6 months;
• Your employment status should be active and current;
• Your net take-home pay should not fall below the amount required under the General Appropriations Act.

The act stipulates that a borrower should have a minimum saving for their regular expenses after deducting all their monthly financial obligations. For an employee, the limit is PHP 5,000. But for a pensioner, the limit is 25% of his monthly income. You can see more information on the official GSIS website, as well as the GSIS loan calculator. There you can also get GSIS policy loan computation.
One can get a tentative computation of his social insurance benefits and loanable amount using the electronic GSIS Member Online (eGSISMO) facility.

How to loan in GSIS

The next section of the detailed guide to GSIS loan is the requirements for the borrower. For the apply, you can use your GSIS Unified Multipurpose Identification (UMID) card. Regardless of the loan category, the process to secure a loan through GSIS is almost the same:

1. Submit the duly filled loan application with the supportive documents either online or through the GSIS kiosks;
2. After verification, your authorized agency officer (AAO) must certify you as an active member without any criminal or administrative cases. You may have to come personally to one of the GSIS branches to do this.
3. If the loan is approved, your GSIS loan status will change and the money will be credited to your eCard or UMID card account instantaneously.

The Alternative for GSIS Loans

The major hurdle for one to get a GSIS emergency loan is its strict eligibility criteria and processing time. GSIS is not yet a fully automated system. Hence, a user has to make applications by traveling to the GSIS kiosks. The lengthy processing time and the necessity of AAO approval even for small amounts can be quite tiresome and intimidating, especially for the elderly pensioners.

On the other hand, reputed and state licensed lenders like Digido offer fast loans without leaving home. Digido has a fully automated online interface for loan approval. It takes only a few minutes to get a loan decision. The eligibility criteria for the Digido loan are simple. Any Filippino citizen within the age group of 21-70 years with regular income and working mobile connection can get a personal loan up to PHP 25,000.

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Conclusion

Going through all the complicated GSIS emergency loan process might not be a feasible option for small amounts such as personal loans. Since all the GISIS members have a regular income, one can go with more efficient lenders like Digido with assured confidence in getting a loan within a few minutes.
Digido is a state licensed lender that strictly adheres to the lending laws prevailing in the country. For some financial emergencies, time matters the most, and everything else fades away. Digido helps you overcome such situations in the most efficient, transparent, and ethical way.

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