BusinessMirror

GSIS total loans reached ₧221B

- By Bernadette D. Nicolas @Bnicolasbm

THE Government Service Insurance System (GSIS) announced it disbursed a total of P221 billion in loans in the past 16 months and 15 days ending May 15.

The state-run pension fund manager revealed in a statement issued last Thursday that the bulk of the total amount disbursed from January last year to May 15 this year was multipurpo­se loans hitting P165 billion and owed by more than 468,000 borrowers.

The GSIS explained multipurpo­se loans were extended to active members who have reached their borrowing limit and were not able to pay their loans. It consolidat­es members’ existing loans and waives surcharges on in-default loan accounts.

In effect, these members were allowed to borrow to pay for debt they were unable to pay.

The GSIS launched in April of this year an “enhanced version” of its multi-purpose loan facility it calls “MPL Plus.” Under this version, members may apply for up to 14 times their basic monthly salary, but not to exceed P5 million, depending on their premium payments. The loan carries an interest rate of 7 percent and its term has been extended to 10 years.

Apart from the multi-purpose loan, the GSIS said it also released P27.8 billion through its financial assistance program to help members settle their outstandin­g loan balance with other lending institutio­ns with reduced interest rate and longer payment term.

The GSIS said it also released P8.8 billion in regular policy loans and

P5.519 billion in emergency loans in the past 16 months and 15 days ending May 15.

The GSIS said about P7.6 billion were released under a loan program wherein members may allowed to borrow P30,000 to buy a computer unit for work-from-home arrangemen­t or online classes. The loan is payable in three years with 6-percent interest per annum. In effect, about 253,333 borrowed from this facility.

This year, the GSIS extended the program implementa­tion for another three months or until June this year to give more time for the 1.56 million qualified members to avail of the loan.

GSIS President and General Manager Rolando L. Macasaet encouraged their members and pensioners to take advantage of the agency’s loan programs.

“By doing so, they are also helping

GSIS sustain its actuarial life and enable us to pay our members and pensioners their benefits as and when they fall due,” Macasaet was quoted in a statement as saying.

Other loans released by the GSIS during the period included the following: enhanced pension loan (P4.6 billion); pensioners’ emergency loan (P204 million); and, educationa­l program (P175 million).

Inactive members were also given the chance to restructur­e their loans through the agency’s debt restructur­ing and repayment program wherein a total of P203 million was released to nearly 1,500.

The agency explained this is a onetime condonatio­n and restructur­ing program for inactive GSIS members with outstandin­g loans and members who are already out of government service and deemed “financiall­yincapable.”

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