The GSIS Multi-Purpose Loan Flex (MPL FLEX) program is a comprehensive financial assistance solution designed for active members of the Government Service Insurance System (GSIS). This program consolidates existing GSIS loans, excluding housing loans, into one account while offering additional funds for members to use as needed. MPL FLEX simplifies loan management, reduces surcharges for first-time borrowers, and provides flexible payment terms to suit individual financial capacities.
Understanding how the MPL FLEX works, its requirements, benefits, and application process is important for members seeking to maximize their GSIS benefits. This guide will walk you through the details of the MPL FLEX program, including eligibility, loanable amounts, payment terms, and application procedures.
Program Overview
The GSIS MPL FLEX consolidates several existing loans, enabling members to manage their obligations more efficiently. It offers loan amounts of up to 14 times a member’s basic monthly salary, with flexible repayment terms ranging from 1 to 15 years. Qualified members can also enjoy a one-time waiver on surcharges for overdue loan accounts when they avail of the MPL FLEX for the first time.
Loans Consolidated under MPL FLEX
It consolidates the following GSIS loans into a single account, simplifying repayments and ensuring outstanding balances are settled:
- Salary Loan (SL)
- Restructured Salary Loan (RSL)
- Enhanced Salary Loan (ESL)
- Emergency Loan Assistance (ELA)
- Summer One-Month Salary Loan (SOS)
- Conso-Loan Plus and Enhanced Conso-Loan Plus
- Member’s Cash Advance / eCard Cash Advance / eCard Plus Cash Advance
- Home Emergency Loan Program (HELP)
- Educational Assistance Loans I and II (EAL I / II)
- Fly PAL, Pay Later (FPPL)
- Study Now, Pay Later (SNPL)
- Stock Purchase Loan (SPL)
Borrowers renewing their MPL FLEX must first clear any outstanding balances from their previous MPL Plus loans and other in-arrears accounts, which will be deducted from the proceeds of the new loan.
Loanable Amount and Payment Terms
The amount members can borrow and the repayment period depend on their paid premium contributions (PPC) and employment type. Here’s a breakdown:
- Loanable Amount for Regular Members
- Members with at least 1 month but less than 20 months of paid premium contributions can borrow up to 1x their basic monthly salary, payable within 1 to 3 years.
- Members with 20 months to less than 3 years of paid contributions can borrow up to 3x their basic monthly salary, payable within 1 to 6 years.
- Members with 3 years to less than 5 years of paid contributions can borrow up to 4x their basic monthly salary.
- Members with 5 years to less than 10 years of paid contributions can borrow up to 7x their basic monthly salary.
- Members with 10 years to less than 15 years of paid contributions can borrow up to 10x their basic monthly salary, payable within 1 to 15 years.
- Members with 15 years or more of paid contributions can borrow up to 14x their basic monthly salary.
- Loanable Amount for Non-Career Members
- Members with 20 months to less than 3 years of paid contributions can borrow up to 3x their basic monthly salary, payable within up to 3 years.
- Members with 3 years to less than 5 years of paid contributions can borrow up to 4x their basic monthly salary.
- Members with 5 years to less than 10 years of paid contributions can borrow up to 7x their basic monthly salary.
- Members with 10 years or more of paid contributions can borrow up to 10x their basic monthly salary, payable within up to 9 years.
- Loanable Amount for Special Members (e.g., judges and justices)
- Special members can borrow up to 14x their basic monthly salary, with a maximum loan amount of up to Php 5 million.
Payment Terms
Borrowers also have the flexibility to choose repayment terms starting from 1 year up to 15 years, depending on their length of premium contributions and employment status. These flexible loanable amounts and terms allow GSIS members to customize their financial plans based on their needs and financial capacity.
Special members from agencies with an existing Memorandum of Agreement (MOA) can select repayment terms of up to 10 years.
Interest Rates and Loan Features
The interest rate for MPL FLEX depends on the member’s paid premium contributions:
- Less than 3 Years
- Interest Rate: 7% per annum (computed in advance)
- Payment Term: Up to 6 years
- 3 Years or More
- Interest Rate: 6% per annum (computed in advance)
- Payment Term: Up to 15 years
- Special members with MOA agreements have an interest rate of 7% per annum, regardless of their PPC.
Benefits
The MPL FLEX program also offers several other advantages, including:
- Consolidated loan accounts for easier repayment.
- Flexible repayment options to fit members’ financial capacity.
- Waiver of surcharges on overdue accounts for first-time borrowers.
- Reduced interest rates compared to previous MPL Plus programs.
- Loan amounts tailored to members’ premium contributions and employment status.
Target Beneficiaries
It was specifically designed to meet the needs of the following target beneficiaries:
- Regular GSIS Members: Active government employees with paid GSIS premium contributions.
- Non-Career Members: Contractual and casual employees working in government agencies.
- Special Members: Judges, justices, and other individuals covered by special GSIS agreements.
- Government Agencies with Memorandum of Agreement (MOA): Employees from agencies that have entered into a MOA with GSIS for the MPL FLEX program.
Eligibility Criteria
To qualify, members must meet the following conditions:
- Employment and Premium Status
- Active membership with at least one month of premium contributions (personal and government shares).
- Not on leave without pay during the application.
- Administrative and Loan Records
- No pending administrative or criminal cases unless the offense is minor.
- No default on GSIS Financial Assistance Loans (GFAL).
- Agency Compliance
- The member’s agency should not have a “Suspended” status.
- Net take-home pay after loan deductions must comply with the General Appropriations Act requirements.
- Special members, including judges and justices, may also qualify if their agency has a Memorandum of Agreement (MOA) with GSIS.
Requirements
To apply for the GSIS MPL FLEX, applicants must prepare the following documentary requirements:
- Duly accomplished GSIS MPL FLEX Application Form (downloadable from the GSIS website).
- Photocopy of a valid Unified Multi-Purpose Identification (UMID) card or eCard.
- Certification from the Agency-Authorized Officer (AAO) of the member’s agency, if applicable.
Application Options
Members can apply for the GSIS MPL FLEX through the following methods:
- GSIS Touch Mobile App: Download the GSIS Touch app to apply anytime, anywhere.
- GWAPS Kiosk: Visit a GSIS Wireless Automated Processing System (GWAPS) kiosk (https://www.gsis.gov.ph/downloads/Active_Kiosks_as_of_June_15_2023.pdf)
- Over-the-Counter (OTC): Apply directly at GSIS Servicing Branches if other methods are unavailable.
Application Procedures
Here is a step-by-step guide to applying for the GSIS MPL FLEX:
Step 1. Check Eligibility
Ensure you meet the qualifications, such as having at least one month of premium contributions and no defaulted GSIS Financial Assistance Loan (GFAL) accounts.
Step 2. Prepare Requirements
Gather the necessary documents, including the completed application form and a photocopy of your UMID or eCard.
Step 3. Choose Application Method
Decide whether to apply through the GSIS Touch mobile app, GWAPS kiosk, or over the counter at a GSIS branch.
Step 4. Submit Application
Submit your application and required documents via your chosen channel.
Step 5. Agency Certification
If applying over the counter, secure certification from your Agency-Authorized Officer (AAO).
Step 6. Wait for Processing
Allow GSIS to review your application and verify your eligibility.
Step 7. Receive Loan Proceeds
Once approved, your loan will be credited to your UMID or eCard account.
Where to Get the Application Form
You can get the GSIS MPL FLEX application form from any GSIS branch or download it directly from the official GSIS website (https://www.gsis.gov.ph/downloads/forms/2023/20230908-MPL-FLEX-Application-Form2.pdf). The form is free of charge, and there are no fees required to obtain it. Once you’ve completed and submitted the form with all necessary requirements, processing typically takes a few working days, depending on the volume of applications.
Frequently Asked Questions (FAQs)
For your reference, here are some of the most common questions and answers regarding the GSIS MPL Flex:
1. Can I renew my MPL Plus under MPL FLEX?
Yes, you can renew your existing MPL Plus loan under MPL FLEX. However, the outstanding balance from MPL Plus and any arrearages will be deducted from your new loan proceeds.
2. Are there loans excluded from MPL FLEX consolidation?
Housing loans, policy loans, and new GSIS programs such as the Computer Loan are not included in MPL FLEX consolidation.
3. How are the proceeds released?
Approved loan proceeds are credited to the borrower’s UMID or eCard account.
4. What happens to the loan balance if the borrower passes away?
In the event of the borrower’s death, the outstanding loan balance will be considered fully paid through Loan Redemption Insurance (LRI).
Video: GSIS MPL FLEX Loan
Learn more about the MPL FLEX Loan Program by watching this video from GSIS:
Summary
The GSIS Multi-Purpose Loan Flex (MPL FLEX) program is a convenient financial solution for active GSIS members seeking to consolidate existing loans and access additional funds. Offering flexible payment terms, competitive interest rates, and streamlined applications through digital platforms, MPL FLEX makes loan management more accessible and strengthens the financial stability of GSIS members. Apply for the MPL FLEX today and enjoy the benefits it offers!