The Government Service Insurance System (GSIS) has rolled out a new loan buyout program on February 3, 2025, designed to alleviate the financial strain on its members. This initiative, known as MPL Max, enables government employees to consolidate their existing loans from GSIS and other lenders into one manageable loan with a favorable interest rate of 6 percent and repayment periods extending up to a decade.
GSIS President and General Manager Arnulfo Veloso emphasized that the program is a crucial support mechanism for public sector employees struggling with high-interest debts. ‘MPL Max is our way of extending a lifeline to those overwhelmed by financial obligations,’ Veloso stated, highlighting the program’s role in not just consolidating debts but also in aiding members towards financial recovery and stability.
To participate, members must enter into a memorandum of agreement with GSIS and their respective agencies. Eligible employees can secure loans up to 19 times their monthly salary or a maximum of PHP5 million, whichever is less. The program offers several benefits, including no surcharges on existing GSIS loans, no service fees, free loan insurance, and the option for penalty-free early loan termination. Additionally, GSIS will directly handle payments to other lending institutions, simplifying the debt settlement process.
Qualification for the program requires members to have made at least one premium payment in the last six months, have no outstanding multi-purpose loans or defaulted GSIS Financial Assistance Loans, be free from any administrative or criminal cases, and maintain a sufficient net take-home pay as stipulated by the General Appropriations Act.
Applicants need to submit an application form, a loan agreement, certified loan documents, a statement of account from lending institutions, a valid ID, and their latest pay slip. To facilitate the application process, GSIS has implemented an appointment system through its GSIS Touch platform, ensuring that each application is handled efficiently.
Upon approval, GSIS will settle the outstanding loans directly with the lending institutions. Any remaining funds will be credited to the member’s GSIS eCard or ATM account, with monthly repayments automatically deducted from their salary.