The Government Service Insurance System (GSIS) offers a comprehensive suite of cash assistance and loan programs designed to support its members, including government employees and pensioners, during various financial circumstances. These programs aim to provide immediate relief, facilitate debt management, and enable members to access funds for specific purposes, such as education and housing.
Note: While SSS are for Filipino privately employed/self-employed individuals, GSIS is a government insurance for public employees.
The GSIS cash assistance and loan programs can be broadly categorized into financial assistance, loan restructuring, consolidation, and specific purpose loans. Each category caters to the unique needs of GSIS members, ensuring they have access to the necessary financial tools to manage their finances effectively and maintain their financial well-being.
Types of GSIS Cash Assistance and Loan Programs
The GSIS offers various financial programs to assist members in times of financial need. These programs range from cash assistance to loans for specific purposes, aiming to support members in managing their finances effectively.
Here are the main categories of GSIS cash assistance and loan programs:
- Financial Assistance Programs: GSIS provides cash assistance programs to help members cope with unexpected expenses or emergencies. These are typically short-term loans or grants intended to provide immediate financial relief.
- Loan Restructuring Programs: These programs allow members to restructure or extend the payment terms of their existing loans. It helps borrowers manage their loan repayments by reducing monthly amortizations or extending payment periods.
- Consolidation Programs: Consolidation programs are designed for members who have multiple outstanding loans. These programs merge multiple loans into a single account to simplify repayment and reduce financial stress.
- Specific Purpose Loans: GSIS also offers loans tailored for specific purposes, such as educational loans, housing loans, or loans for major personal expenses. These loans cater to unique needs, providing targeted financial solutions for GSIS members.
Now, let’s take a closer look at the individual GSIS programs available under these categories.
1. Christmas Cash Gift
This program provides an annual cash benefit to old-age and disability pensioners under RA 8291, RA 660, and PD 1146. To qualify, pensioners must have been receiving their monthly pension for at least five years and must renew their active status on their birthday. The cash gift is distributed during the Christmas season.
Purpose: To offer additional financial assistance to GSIS pensioners during the holidays.
Benefits and Other Terms:
- Pensioners with previous cash gifts over Php10,000: One-month pension up to Php12,600.
- Pensioners with previous cash gifts Php10,000 or below: One-month pension up to Php10,000.
2. Program for Restructuring and Repayment of Debts (PRRD)
PRRD is a loan restructuring and condonation program for inactive GSIS members who are no longer in government service. It helps those struggling financially to repay their outstanding loans by offering more manageable terms. This is a one-time opportunity.
Purpose: To assist former GSIS members in settling their unpaid loans through restructured payments.
Benefits and Other Terms:
- Loans covered:
- Salary Loan, Restructured Salary Loan, Enhanced Salary Loan
- Emergency Loan Assistance, Summer One-Month Salary Loan
- Conso-Loan, Enhanced Conso-Loan, Emergency Loan
- Home Emergency Loan Program
- Study Now, Pay Later Loan, Stock Purchase Loan
- GSIS Financial Assistance Loan (GFAL) for DepEd Personnel
- Policy Loans (Regular and Optional)
- Loans not covered:
- Pension Loans, Pension Emergency Loans, Housing Loans
3. GSIS Restructuring Program for Service Loans (RPSL)
The GSIS Restructuring Program for Service Loans (RPSL) is a one-time offer aimed at helping inactive members, pensioners, and active members with unpaid loans for more than six months. It stops interest, penalties, and surcharges on the outstanding debt and offers a chance to restructure payments. Members can choose from various installment options based on their financial capacity.
Purpose: The program aims to assist government employees in repaying their service loans through flexible terms, preventing legal action and maintaining creditworthiness.
Benefits and Other Terms:
- Stops interest, penalties, and surcharges on unpaid loans.
- Condones penalties, lowering the outstanding balance.
- Flexible payment options with installment plans.
- Interest rates of 3% to 6%, depending on the down payment.
- Maximum five-year repayment term.
- Various loans can be restructured, excluding real estate and pension loans.
- Payments can be made through various channels, including salary or pension deduction.
4. GSIS Financial Assistance Loan (GFAL)
The GSIS Financial Assistance Loan (GFAL) is a debt-consolidation program that allows GSIS members to transfer their loans from other institutions to GSIS, providing lower interest rates and longer payment terms. This program helps reduce the debt burden of teachers and government employees. GFAL also includes a Top-Up option for members who haven’t reached the maximum loanable amount.
Purpose: The GFAL program aims to improve the financial stability of GSIS members by helping them consolidate their existing loans into a single, manageable payment.
Benefits and Other Terms:
- Maximum loanable amount of ₱500,000.
- Interest rate of 6% per annum, payable over 6 years (72 monthly installments).
- Two-year repayment term for elected or appointed members.
- Top-Up option for borrowing additional funds if below the maximum loan amount.
- Requires at least 3 years of paid premiums for permanent members or 15 years for non-permanent members.
- Applicant must have no pending administrative or criminal cases.
- Redemption insurance at 1.2% of the gross loan amount.
5. GFAL-Educational Loan (GFAL-EL)
The GFAL-EL is an educational loan program provided by the GSIS for its members to help cover tuition fees and other school-related expenses for their dependents. This loan follows a “study now, pay later” scheme, giving borrowers a grace period to save up before repayment starts. The loan is offered to active GSIS members who meet specific qualifications.
Purpose: To assist GSIS members in financing the education of their children or relatives.
Benefits and Other Terms:
- Maximum loan amount: Php100,000 per academic year
- Beneficiaries: Up to two relatives, must be enrolled in a 4or 5-year college course
- Interest rate: 8%, computed in advance
- Grace period: 5 years without payments, repayment starts after the last semester
- Repayment term: 10 years, with up to 5 years for repayment after grace period
6. Consolidated Loan (Conso-Loan)
The Consolidated Loan combines five GSIS loan products into one: Salary Loan, Restructured Salary Loan, Enhanced Salary Loan, Emergency Loan Assistance, and Summer One-Month Salary Loan. First-time borrowers get automatic waivers on penalties and surcharges from these loans. This program simplifies repayments for multiple loans.
Purpose: To consolidate various loans into one for easier repayment and financial management.
Benefits and Other Terms:
- Combines five loan products into one.
- First-time borrowers receive automatic penalty waivers.
- Available to active GSIS members without pending cases or leaves without pay.
- Minimum loanable amount: Php15,000.
- Loan proceeds credited to the member’s GSIS eCard or UMID card.
7. Enhanced Conso-Loan Plus
The Enhanced Conso-Loan Plus allows regular active members with at least 10 years of paid premiums to consolidate existing salary-related loans. Borrowers can receive a loan equivalent to a specific number of months’ salary depending on their years of service, with longer repayment terms. The program also offers penalty waivers.
Purpose: To provide better loan terms for GSIS members by offering higher loan amounts and extended payment terms.
Benefits and Other Terms:
- Up to 14-month salary loan for members with 25 years of service.
- Loanable amount ranges from 3 to 14 months of salary.
- Interest rate: 12% annually, compounded on a diminishing balance.
- Payment term: 6 to 10 years, depending on years of service.
- Minimum loanable amount: Php15,000.
- Application through GSIS kiosks and proceeds credited to eCard/UMID card.
8. Policy Loan
The Policy Loan allows GSIS members to borrow against their life insurance policy. Members can receive a portion of the accumulated termination value or cash value of their policy, with an 8% interest rate, payable either monthly or deducted from the policy upon maturity.
Purpose: To allow members to borrow money based on the value of their life insurance policy.
Benefits and Other Terms:
- Loanable amount: Up to 70% of the policy’s termination value (ELP) or 50% (LEP).
- Interest rate: 8%, compounded monthly (ELP) or annually (LEP).
- Loan proceeds credited to the member’s eCard or UMID card.
- Repayment options: Monthly payments or deductions from policy termination/renewal.
9. Enhanced Emergency Loan
The Enhanced Emergency Loan assists GSIS members affected by natural calamities. Members living or working in areas under a state of calamity can apply. The program offers larger loan amounts and waives certain renewal conditions for quicker access to funds.
Purpose: To provide financial relief to members in disaster-stricken areas.
Benefits and Other Terms:
- Loanable amount: Php20,000 (new applicants), Php40,000 (existing borrowers)
- Interest rate: 6% per annum
- Payment term: 3 years (36 months)
- Monthly amortization: Php655.56 for Php20,000, Php1,311.11 for Php40,000
- Proceeds credited to eCard or UMID card
10. Pension Loan
The Pension Loan is available to GSIS old-age pensioners under specific laws (RA 660, PD 1146, RA 8291). It allows pensioners to borrow based on their Basic Monthly Pension (BMP), with limits depending on age. Applications can be made via GWAPS kiosks.
Purpose: To offer pensioners financial support through accessible loans.
Benefits and Other Terms:
- Loanable amount based on age:
- 60-64 years old: Up to 6 times BMP, max Php100,000
- 65-69 years old: Up to 4 times BMP, max Php60,000
- 70 years old and above: 2 times BMP, max Php20,000
- Interest rate: 10% per annum
- Payment term: 24 months
- Proceeds credited within 3-5 workdays
11. Pensioners Emergency Loan
The GSIS Pensioners Emergency Loan provides pensioners with financial assistance in times of calamity. Pensioners may borrow up to Php20,000 under this program. The loan must be paid over 36 months, with a fixed interest rate of 6% per year.
Purpose: This loan helps pensioners residing in calamity-stricken areas access emergency funds.
Benefits and Other Terms:
- Loanable amount: Php20,000
- Interest rate: 6% per annum
- Term: 36 months (3 years)
- Monthly amortization: Php655.56
- Eligibility: Old-age pensioners under RA 660, PD 1146, or RA 8291 living in areas declared under a state of calamity
- Loan applied over the counter at GSIS offices
12. Multi-Purpose Loan Plus (MPL Plus)
MPL Plus offers GSIS members an expanded loan program with higher loan limits and longer repayment terms. This program is designed to help members consolidate and restructure their existing GSIS loans. MPL Plus also allows members to borrow up to Php5 million, depending on their premium payments, basic monthly salary, and employment status.
Purpose: To provide financial relief and flexibility to GSIS members by restructuring overdue loans and offering financial assistance for their immediate needs.
Benefits and Other Terms:
- Loanable amount: Up to Php5 million (depends on Premium Payments Period and Basic Monthly Salary)
- Interest rate: 7% per annum for all borrowers
- Loan term: Up to 10 years for permanent employees and up to 9 years for non-permanent employees
- Consolidates multiple GSIS loans, including Salary Loans, Emergency Loan Assistance, and Educational Assistance Loans
- Eligibility: Regular and special members (no leave of absence, no pending criminal/administrative cases, and employment status in good standing)
13. Multi-Purpose Loan Flex (MPL Flex)
MPL Flex is a flexible loan program for GSIS members, including teachers and other government workers, offering easier terms than the previous MPL Plus program. It requires only one month of premium contribution, lower interest rates, and longer payment terms of up to 15 years.
Purpose: To offer GSIS members a more affordable and flexible loan option that helps consolidate debts while maintaining manageable payment terms.
Benefits and Other Terms:
- Loanable amount: Depends on Premium Payments Period and Basic Monthly Salary
- Interest rate: 6% per annum for members with 3+ years of contributions; 7% for those with less than 3 years
- Loan term: Up to 15 years for regular members with at least 10 years of contributions
- Consolidates various GSIS loans, such as Salary Loans, Emergency Loan Assistance, and Educational Assistance Loans
- Available to permanent and non-permanent members through GSIS kiosks or over-the-counter applications
14. GSIS Housing Restructuring Program
The GSIS Housing Restructuring Program allows members with housing loans to restructure their payments to avoid foreclosure. This program offers flexibility in extending loan terms and lowering interest rates to help members manage overdue housing accounts. It is open to borrowers, their heirs, or buyers of rights.
Purpose: To provide a way for GSIS members to restructure their housing loans and avoid penalties, foreclosure, or auction.
Benefits and Other Terms:
- Eligible Accounts: Current, overdue, undergoing foreclosure, or canceled but not yet auctioned
- Interest Rate: 6% per annum, compounded annually
- Penalty: 0.5% per month on unpaid obligations
- Maximum Term: Varies based on account status, up to 10 years or remaining loan term, not exceeding borrower’s age of 70
- Open to heirs of deceased borrowers and buyers of rights
Video: GSIS to Launch a New Program that Allows Government Employees to Borrow Money and Start a Business
State-run pension system, GSIS, is all set to offer a new program, allowing government employees to borrow money and start their own businesses. Learn more about the details of this new program in this video from ANC 24/7:
Summary
The GSIS offers a wide range of cash assistance and loan programs to support its members during various financial circumstances. These programs are designed to provide immediate relief, facilitate debt management, and enable members to access funds for specific purposes, ensuring they have access to the necessary financial tools to maintain their well-being.
Contact Information
Details about the GSIS cash assistance and loan programs can be inquired about or read through the following communication channels:
Government Service Insurance System (GSIS)
GSIS Website: www.gsis.gov.ph
GSIS Facebook Page: @gsis.ph
Official Email Address: gsiscares@gsis.gov.ph
GSIS Contact Center:
Metro Manila Landline: 8847-4747
Globe/TM Subscribers: 1-800-8-847-4747
PLDT/Smart/Sun/Talk ‘N Text Subscribers: 1-800-10-847-4747
