GSIS offers debt relief with loan buyout program

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The Government Service Insurance System (GSIS) yesterday launched a loan buyout program, allowing government workers to consolidate their debts with interest rates as low as 6 percent.

In a statement yesterday, the state pension fund said its Multi-Purpose Loan (MPL) Max program starts with a memorandum of agreement between the GSIS and the government agency.

Once signed, employees can combine all their loans into a single loan that offers lower interest rates and extended payment terms.

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MPL Max offers qualified borrowers the opportunity to borrow up to 19 times their salary or P5 million, whichever is lower, with payment terms extending up to 10 years.

The GSIS has eliminated surcharges on existing GSIS loans and waived all service fees. The program also includes loan insurance coverage at no additional cost, with the flexibility to pre-terminate without penalties.

GSIS president and general manager Wick Veloso emphasized the pension fund’s mission to shield members from excessive interest rates in the lending market.

“Through the MPL Max, we are throwing a lifeline to our members who are weighed down by debt. This goes beyond consolidating loans — we are helping our members rebuild their lives by creating a clear path to financial recovery and stability,” Veloso said.

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