Applying for a GSIS Policy Loan is a straightforward process designed to provide financial assistance to qualified members. This loan allows you to borrow against your GSIS (Government Service Insurance System) life insurance policy, whether it is a Life Endowment Policy (LEP) or an Enhanced Life Policy (ELP). With flexible repayment options and a competitive interest rate, the policy loan is a practical solution for unexpected expenses.
This guide will walk you through the requirements, step-by-step application procedures, and other essential details about the GSIS Policy Loan. By understanding the process, you can make the most out of this GSIS benefit while avoiding common issues during application.
Program Overview
A GSIS Policy Loan is a borrowing facility available to members with a GSIS life insurance policy. This loan is secured against the value of the policy, allowing members to access and leverage funds based on the value of their insurance policy without withdrawing their policy benefits prematurely. Members with an Enhanced Life Policy (ELP) can borrow up to 70% of the accumulated termination value of the policy, while those with a Life Endowment Policy (LEP) can borrow up to 50% of the accumulated cash surrender value.
The loan is available at an interest rate of 8%, with payment options ranging from monthly amortization to a lump-sum deduction upon policy maturity or termination. It comes with a flexible application process, competitive interest rate, and multiple payment options. These terms make the GSIS policy loan a reliable option for financial relief during emergencies or major expenses.
Loan Terms and Conditions
This GSIS loan has clear payment terms and conditions:
- Repayment Options:
- Fixed monthly payments deducted from your salary.
- Lump-sum deduction upon policy renewal, maturity, or termination.
- Interest Rate:
- 8% per annum for LEP loans.
- 8% compounded monthly for ELP loans.
- First Due Date:
- If the loan is granted before the 10th of the month, the first installment is due on or before the 10th of the following month.
- If the loan is granted after the 10th, the first payment is due on the 10th of the second month after loan approval.
- Loan Renewal:
- Members can renew their loan one year after the original loan date.
Benefits
The GSIS Policy Loan provides members with financial flexibility and convenient terms to address immediate monetary needs.
- Access up to 70% of your policy’s accumulated value (ELP) or 50% (LEP).
- Competitive interest rate of 8% per annum or compounded monthly.
- Flexible repayment options: monthly amortization or deduction upon policy maturity/termination.
- Quick and easy application through kiosks, online portals, or email.
- No collateral or guarantor required.
- Loan proceeds are credited directly to your GSIS eCARD/UMID account.
- Option for loan renewal after one year.
- Pretermination allowed for early repayment.
- Automatic deduction of the loan balance from policy benefits in case of separation, retirement, or death.
Who Can Apply
This loan program is designed to provide financial assistance to the following:
- Insurance Coverage: Members insured for at least one year under a GSIS life insurance policy.
- Active Membership: The insurance policy must be active, and you must be in active government service.
- GSIS eCARD Holder: You need to have a GSIS eCARD or a UMID card that is activated.
- No Pending Cases: You should not have any unresolved administrative or criminal cases.
These conditions ensure that only qualified members with active accounts and compliance records can benefit from this program.
Required Documents
Before applying, applicants must also prepare the following:
- Completed Policy Loan Application Form (Regular or Optional)
- GSIS eCARD or UMID Card for identity verification
- If the eCARD/UMID is lost, prepare two valid government-issued IDs and a photo of yourself holding the IDs.
Application Methods and Procedures
GSIS offers several convenient methods that the applicants can choose from:
1. Via GWAPS Kiosk
The GSIS Wireless Automated Processing System (GWAPS) kiosks are located in various government offices and GSIS branches nationwide. This method is ideal for members who want to apply quickly without filling out physical forms.
Step 1. Insert your GSIS eCARD or UMID card into the kiosk card reader.
Step 2. Place your finger on the biometric reader for identity verification.
Step 3. Select “Policy Loan” from the transaction options.
Step 4. Confirm your loan by scanning your finger on the biometric scanner again.
Step 5. Press “Logout” after completing the transaction.
2. Via eGSISMo Portal
For tech-savvy members who prefer online transactions, the eGSISMo (Electronic GSIS Member Online) portal offers a convenient alternative to manage their applications from home.
Step 1. Log in to your eGSISMo account using your BP number and password.
Step 2. Click the “Loans Application” icon and select the appropriate Policy Loan type (Regular or Optional).
Step 3. Choose the loan payment scheme: monthly payments or lump-sum deduction upon policy maturity or termination.
Step 4. Upload a photo of yourself holding your GSIS eCARD/UMID or two valid government IDs (if the card is lost). Save the file as JPEG or PDF.
Step 5. Review and confirm the loan agreement, then click “SAVE.”
Step 6. Wait for an email confirmation from GSIS with further instructions.
3. Via Email
If visiting a kiosk or using the portal is not feasible, you can apply via email by submitting scanned copies of the required documents. This option suits members who need a remote application process but do not have access to the eGSISMo platform.
Step 1. Complete the Policy Loan Application Form.
Step 2. Scan your GSIS eCARD/UMID card or valid government IDs (JPEG or PDF format).
Step 3. Email the documents to your GSIS handling branch. You can find a list of GSIS branches on their official website.
Step 4. Wait for an email response from GSIS for the next steps.
Where to Secure the Application Form
The GSIS Policy Loan application forms are available online for easy access. For Regular Policy Loans, you can download the form here. For Optional Policy Loans, the form can be downloaded here.
Other Important Information
For other important information that borrowers will need to know about the GSIS Policy loan, please check this list:
- If a member passes away, retires, or separates from service before fully repaying the policy loan, the remaining balance will automatically be deducted from the insurance policy benefits. This deduction includes the principal loan amount, accrued interest, and other charges.
- Borrowers can preterminate their policy loan during its term by paying the full outstanding balance, including interest and applicable fees. Pretermination provides flexibility for members who want to settle their obligations early.
Video: How Much Can You Borrow from GSIS under the Policy Loan
To learn more about the loanable amount and other pertinent information related to the GSIS Policy Loan, watch this video from Master Jet:
Summary
Applying for a GSIS Policy Loan is a practical option for members who need financial support while retaining their life insurance benefits. By meeting the eligibility criteria, preparing the necessary documents, and choosing the most convenient application method, you can secure the loan with ease. With a fixed 8% interest rate and flexible payment terms, the GSIS Policy Loan provides a dependable solution for your financial needs. Take advantage of this GSIS benefit and apply for a GSIS policy loan today!