The Government Service Insurance System (GSIS) has enhanced its pension loan program by increasing the maximum loanable amount to six times the monthly pension, with a limit of P500,000, regardless of the pensioner’s age.
The pension fund said in a statement yesterday the Enhanced Pension Loan is payable in 24 equal monthly installments through automatic pension deduction. The interest of the loan is 10 percent.
All old-age pensioners may now avail of the loan program. Those receiving their pension for at least a month can avail.
“Previously, only old-age pensioners who are 64 years old and below may avail of the maximum amount equivalent to six times their monthly pension. Now, all old-age pensioners can borrow the maximum amount,” Rolando Macasaet, GSIS president and general manager, said.
“We also increased the credit limit, from P100,000, to P500,000,” he added.
Not qualified to the program are 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.
The applicant must also have at least 25 percent resulting net monthly pension after loan deduction.