GSIS hikes credit cap for pensioners

State-run Government Service Insurance System (GSIS) said yesterday it has improved its pension loan program by increasing the credit limit and removing the age cap for borrowers.

In a statement, GSIS president and general manager Rolando Macasaet said the state pension fund raised the maximum loanable amount under the pension loan program to six times the monthly pension of applicants, or up to a maximum of P500,000, regardless of age.

“Previously, only old-age pensioners who are 64 years old and below may avail themselves of the maximum amount equivalent to six times their monthly pension. But because we want to provide relief to all old-age pensioners amid the pandemic which affected everyone, all old-age pensioners can now borrow the maximum amount, even if they are 65 years old and above,” Macasaet said.

“We also raised the credit limit from P100,000 to P500,000 under the Enhanced Pension Loan,” he said.

The Enhanced Pension Loan carries an interest rate of 10 percent and is payable in 24 equal monthly installments through automatic pension deduction.

Qualified for the program are all old-age pensioners who have been receiving their pension for at least a month. The applicant must have at least 25 percent resulting net monthly pension after the loan is deducted.

However, those who have service loan being amortized under the Choice of Loan Amortization Schedule for Pensioners or GSIS Program for Restructuring and Repayment of Debts at the time of application; and those who have existing pension loan that have not yet been fully paid, are not eligible for the loan.

For their safety, the GSIS advised qualified pensioners to apply online via the Electronic GSIS Member Online (eGSISMO) or by emailing the requirements to their designated branch office.

They may also opt to apply over-the-counter at any GSIS branch office nationwide. Application via the GSIS Wireless Automated Processing System (GWAPS) kiosk is initially available at the GSIS Head Office in Pasay City. Availability of other GWAPS kiosk will be announced in the coming weeks, the state fund said.

According to the latest available data, the GSIS disbursed P5.34 billion in various loan benefits, including consolidated loans (consoloan), policy loans and pension loans from January to May 13 last year.

Conso-loan, policy loan and pension loan are regular loans offered by the GSIS that may be availed anytime by qualified borrowers.