What is Multi-Purpose Loans (MPL) in the Philippines

As the government is cognizant of the financial situations of its members, a multi-purpose loan (MPL) was designed to help its members with any immediate financial need. One critical benefit protects its members from unpaid loans ballooning to an amount that will eat up their retirement and other benefits. The benefits derived from MPL cannot all be quantified but this loan facility clearly shows the government’s role in taking care of and providing cheap credit and putting members’ finances in order.

What is the GSIS Multi-Purpose Loan and its Purpose?

The GSIS Multi-Purpose Loan (GSIS MPL) allows its member-borrowers additional credit line to help them consolidate and pay their outstanding GSIS loan balances in a timely and beneficial manner. The consolidation of loans shall result in fully liquidating the outstanding balances on the specified loans. The consolidation rolls the loans into one loan which usually simplifies and lower payments. The loan facility not only offers consolidation features but includes longer payment features, low interest, and a one-time waiver of surcharges on all due and demandable GSIS loan accounts of its members. However, housing loans are specifically excepted in the scheme but under the GSIS MPL Plus, members with arrearages in their housing loan are allowed to apply.  

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Who are Eligible for the GSIS Multi-Purpose Loan?

MPL loan is only available for GSIS regular members (permanent and non-permanent), and special members (constitutional commissioners, members of the judiciary, including those with equivalent ranks as defined under RA 8291) provided that they:

• have already paid at least three months of premiums;
• are not on leave without pay;
• no pending administrative or criminal case;
• the agency they belong is not on a suspended-status;
• belong to an agency with a memorandum of agreement on MPL or GFAL with GSIS; and
• the net take-home pay is not lower than the amount required under the General Appropriations Act after all monthly obligations are deducted.

What are the MPL Requirements for Application?

The requirements for application include a duly accomplished GISIS MULTI-PURPOSE AND CONSOLIDATION OF DEBTS  Application Form (1) and a photocopy of the Unified Multi-Purpose ID (UMID) card or Electronic Card (eCard).

How to apply to GSIS MPL?

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:

Via the Electronic GSIS Member (eGSISMO)

1. Log in to your eGSISMO account. Have your User ID/Business Partner (BP) number and Password.
2. Click the Loans Application Choose Multi-purpose Loan Plus from the dropdown menu for Loan Product. Select your loan type (New or Renewal).
3. Upload your picture holding your UMID card or temporary eCard (or any 2 valid government-issued IDs if UMID / temporary CARD is not available). The file to be uploaded should be in JPEG or PDF format and its size should be 2MB only.
4. Click Next.
5. Confirm Loan Agreement and click SAVE.
6. Wait for the email confirmation from GSIS for your tentative loan computation.

 Application by Email

• Prepare a duly accomplished MPL Plus Application Form, picture you holding your GSIS UMID card or temporary eCard 2 valid IDs if your UMID card or temporary eCard is not available.
• Save the application form and photos of your IDs as JPEG or PDF files. File size should not exceed 2MB.
• Email the documents to your GSIS handling branch. The list of email addresses of GSIS offices is available on GSIS official website – Contact Us (2)
• Wait for the email confirmation from GSIS for tentative loan computation.

Via the GSIS Wireless Automated Processing System (GWAPS) Kiosk

1. Go to a GWAPS kiosk nearest you.
2. Place your UMID/eCard Plus in the GWAPS kiosk card reader. You will be required to place your finger in the biometrics scanner. Once recognized, your personal data will be displayed.
3. Choose the Loan Windows icon and click on Multi-Purpose Loan Plus. The tentative computation of your loan is displayed on the screen. You may change the loan amount or payment term.
4. To confirm your loan application, place your finger on the biometrics scanner.
5. Wait for an email or SMS from GSIS regarding the approval of your loan.

How to apply for MPL loan online? Via GSIS Touch

• Download the GSIS Touch mobile from the Apple App Store or Google Play Store and install it on your smartphone.
• Register in eGSISMO. Be ready with your BP number and ensure that your mobile number is updated.
• Log in to your eGSISMO account. Be ready with your Username and Password.
• Tap the Loans icon at the bottom of the eGSISMO screen and tap Available Loans. Select Multipurpose Loan Plus.
• Check the tentative computation details displayed on your mobile screen.
• Tap Submit Loan Application.
• Wait for an email or SMS from GSIS regarding the approval of your loan.

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What is the loanable Amount?

The maximum loanable amount shall depend on the member’s Period with Paid Premium (PPP) and computed Basic Monthly Salary (BMS). The following table shows the maximum loanable amount and loan term for permanent employees without tenure.

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This table shows the maximum loanable amount and loan term for non-permanent and permanent employees with term or tenure.

Special members with MOA with GSIS may apply for an amount equivalent to 14 times of their BMS but not exceed the credit limit of P5 million. Their loan term is set at a maximum of 10 years.

What is the GSIS Multi-Purpose Loan Term?

Depending on their employment status, periods with paid premiums (PPP), and basic monthly salary (BMS), loan borrowers may apply for up to P5 million and pay the loan up to 10 years.  The loan terms based on PPP are outlined in the table:

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

The payment term shall depend on the members’ Period with Paid Premiums (PPP) and computed Basic Monthly Salary (BMS) with an interest rate of 8% per annum for members with a PPP of less than 3 years and 7% per annum for members with PPP at least 3 years. 

What is GSIS MULTI-PURPOSE LOAN PLUS (GSIS MPL PLUS)?

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.

What is Pag-Ibig Multi Purpose loan

Pag-IBIG Fund Multi Purpose Loan (4)or MPL is a cash loan designed to help Pag-IBIG Fund members with any urgent financial need.

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How is Pag-Ibig multi purpose loan calculated?

Qualified members can borrow up to 80% of their total Pag-IBIG Regular Savings which consist of their monthly contributions, and accumulated dividends earned.

If the number of contributions completed upon application is 60 months, multiply it by the Monthly Pag-Ibig contribution which is 200, then multiply with the Percentage you can loan which is 80 percent. So the result would be, 60 x 200 x .80 = Php 9,600.

The amount of loan you can avail of increases as your monthly contributions increase, and so does the loan factor. If you have made contributions for 120 months or more, you can take out a loan at an 80% factor, otherwise, your loan factor would be at 60% if your monthly contributions are below 120 months.

How can I calculate my Pag-ibig loan amount?

Calculations for the Pag-IBIG Multi-Purpose Loan amount are made according to the individual’s membership term, multiplied by their monthly contribution. From there, a 60% loan factor is applied.

You can still apply for a Pag-IBIG Multi-Purpose Loan even if you have existing loans with Pag-IBIG, like a Calamity Loan. Your loanable amount will be the difference between your current loan balance and 80% of your contribution’s Total Accumulated Value (TAV).

How much can I borrow under the Pag-IBIG MPL?

Qualified members can borrow up to 80% of their total Pag-IBIG Regular Savings, which consist of their monthly contributions, their employer’s contributions, and accumulated dividends earned.

If you have an outstanding Pag-IBIG Calamity Loan, the amount you may borrow shall be the difference between 80% of your total Pag-IBIG Regular Savings and the outstanding balance of your Pag-IBIG Calamity Loan.

How do I pay my Pag-IBIG MPL?

The loan is payable within 36 months and comes with a deferred first payment. Members may also opt to pay their loans in 24 months. If you are an employed member, you may pay your loan amortizations via a salary deduction arrangement with your employer. Should you wish to accelerate or advance your payments, you may do so via Virtual Pag-IBIG, at any Pag-IBIG Fund branch near you, or through any of the accredited collecting partners’ outlets or their online payment channels.

Self-employed individuals or Overseas Filipino Workers may pay their loan amortizations via Virtual Pag-IBIG, at any Pag-IBIG Fund branch near you, or through any of our accredited collecting partners’ outlets or their online payment channels.

Where I can borrow Money Urgently?

Benefits of Digido personal Loans

If you want to avail of a personal loan ASAP to enable you to consolidate some high-interest debts or to pay for other emergency expenses, Digido is the solution to your current predicament. Not only will you be attended immediately by a legitimate online financing house, but there are many beneficial features which include you getting your first loan with a 0% interest rate for 7 days and borrowing up to PHP 25,000 for up to 180 days for repeated loans.

If you want to borrow money quickly, without a lot of paperwork, Digido will help you get the loan online quickly wherever you are. Just use the internet and a government ID 24/7. The loan amount can be from 1,000 to 25,000 pesos. Just follow these 3 simple steps and you will surely receive your money in time for your needs:

• Create your private space on the website. Complete the form with your personal data in just a few minutes, needing only your ID and phone number.
• Indicate how to transfer the loan. The robot service Digido collaborates with major partners so that you can obtain and repay the loan in the most convenient way.
• Sign the contract with Digido. Confirm your consent to obtain the loan online. Receive the confirmation code via a message. The loan will be transferred in real-time in the simplest way for you.

SUMMARY

The government encourages all its members, especially those who have reached their borrowing limit and have been unable to pay their GSIS loans to avail of the GSIS MPL program. The program consolidates all service loans and waives surcharges on all in-default loan accounts while giving affordable payment terms. The GSIS MPL Plus relaxed the MPL loan requirements to give better service to its employees. The main benefits include qualified members to apply up to 14 times their basic monthly salary provided it does not exceed Php3 million, waived surcharges on outstanding loan balance for first-time availees, 7 percent interest applied to all borrowers, and relaxed eligibility conditions to all prospective borrowers.

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Likewise, rates or offers published in the websites are promotional marketing offers only and do not constitute any binding contract between the Corporation and the website users.While the writers and publishers of the articles in the website wrote the articles using credible information available to them at the time of publication, any changes or updates to the information presented in this article may not be reflected here.

Hence, users are enjoined to exercise appropriate diligence in using the data and information published in the website, and they are urged to study and compare it with other credible sources. Users understand that the writers, publisher, website owner and the Corporation are not liable for any damage or injury they sustained for their wrongful or erroneous use of the data or information written in the article and published in the website.

Note: The information presented in the tables is subject to change and borrowers are advised to contact their chosen bank/ financial entity directly for the updated information