GSIS Loan Programs Set Record with P289 Billion Disbursed

In a significant achievement, the Government Service Insurance System (GSIS) announced that its Multi-Purpose Loan (MPL) programs have disbursed a record-breaking P289 billion in 2024, aiding over 1.2 million government workers across the Philippines. Launched in September 2023, the MPL Flex program alone has provided P282 billion to 1,049,246 members, marking a 35.5% increase from the P208.17 billion disbursed in its inaugural year. Additionally, the MPL Lite program has extended P7.2 billion to 197,675 members. Within just 16 months, MPL Flex has emerged as a pivotal part of GSIS’s financial support system, offering loans up to 14 times a member’s monthly salary, with a maximum of P5 million, at a 6% annual interest rate, and repayment periods up to 15 years. GSIS President and General Manager Wick Veloso highlighted the program’s rapid growth and its clear demand among members for flexible financial options. The impact of these loans extends beyond individual borrowers, positively affecting entire communities. For instance, Roland Daleon Satin, a teacher from Lucena City, utilized his MPL Flex loan to start a computer shop catering to remote workers and students, adjusting his rates to support educational needs during the shift to blended learning. Satin’s initiative not only boosts his family’s income but also aids the community by providing affordable computer and printing services. Veloso praised such success stories, noting how MPL Flex enables members to expand their businesses and secure additional income sources while managing family needs. GSIS has enhanced its digital platforms, allowing members to apply for loans online through the GSIS Touch mobile app, which offers round-the-clock access to loan services and significantly reduces processing times, with funds credited to e-Card accounts within 24 hours of approval. The strong performance of GSIS’s loan programs is supported by robust financial results, with total assets growing by 8% to P1.8 trillion and net income from operations soaring by 58% to P120 billion in the third quarter of 2024. Overall revenues increased by 27% to P258 billion, and the non-life insurance business saw a 60% rise in gross premiums written to P8 billion. Veloso emphasized that these financial achievements enhance GSIS’s ability to offer accessible loan programs while ensuring the long-term sustainability of member benefits.