In a significant financial milestone, the Government Service Insurance System (GSIS) announced that its Multi-Purpose Loan (MPL) programs have disbursed a record-breaking PHP289 billion in 2024, aiding over 1.2 million government employees across the Philippines. The MPL Flex program, launched in September 2023, alone has provided PHP282 billion to 1,049,246 members, marking a 35.5 percent increase from the PHP208.17 billion disbursed in its inaugural year. Additionally, the MPL Lite program has extended PHP7.2 billion to 197,675 members.
The MPL Flex program, which has quickly become a pivotal part of GSIS’s financial support system, offers loans up to 14 times a member’s monthly base salary, with a maximum of PHP5 million. These loans come with a 6 percent annual interest rate and can be repaid over 15 years. GSIS President and General Manager Wick Veloso highlighted the program’s rapid growth and its clear demand among members for flexible financial solutions.
The impact of these loans extends beyond individual financial relief, fostering community development. For instance, Roland Daleon Satin, a Master Teacher at Mayo Crossing Elementary School in Lucena City, utilized his MPL Flex loan to open a computer shop catering to remote workers. As the need for blended learning emerged, Satin adjusted his pricing to assist students, demonstrating how these loans can support both personal and community needs.
GSIS has also enhanced its digital services, allowing members to apply for loans online through the GSIS Touch mobile app. This app provides round-the-clock access to loan services, enabling members to apply, monitor their applications, and manage their accounts conveniently. The digital transformation has streamlined the loan process, with funds now being credited to members’ e-Card accounts within 24 hours of approval.
The success of GSIS’s loan programs is underpinned by strong financial performance. By the third quarter of 2024, the pension fund’s total assets had grown by 8 percent to PHP1.8 trillion, and net income from operations had surged by 58 percent to PHP120 billion. Overall revenues increased by 27 percent to PHP258 billion, while the non-life insurance business saw a 60 percent rise in gross premiums written, reaching PHP8 billion. Veloso emphasized that this robust financial health enables GSIS to continue offering accessible loan programs while ensuring the long-term sustainability of member benefits.