State pension fund Government Service Insurance System (GSIS) president and general manager Wick Veloso reminded GSIS members and pensioners to pay their loans promptly and accurately to keep their benefits safe and secure.
“We urge our member-borrowers to pay the correct loan amortizations on time in order to avoid compromising their hard-earned future benefits and other privileges,” Veloso said.
He stressed that interests and penalties stemming from unpaid loans will be deducted from their retirement or separation benefits, which might leave them with little or no proceeds at all.
The GSIS chief added that government agencies have an important role to play in keeping the benefits of members safe and secure. Deducting the correct monthly amortization and remitting it on time will go a long way in protecting their benefits.
Veloso also recommended the GSIS Multi-Purpose Loan (MPL) Plus for members with overdue loan accounts to help them settle their obligations. MPL Plus waives penalties and surcharges on the members’ existing salary loan accounts, enabling them to pay their outstanding loan balances.
The credit limit is P5 million depending on the members’ salary and period of paid premiums. It offers a low interest of 7% and payment period of up to ten years.
Qualified for the loan are regular and special members who are not on leave of absence without pay; have at least three monthly premium contributions; and have no pending administrative or criminal case.
Borrowers should also belong to an agency whose status is not suspended and who has executed a memorandum of agreement with GSIS on MPL or GSIS Financial Assistance Loan. In addition, they should have a resulting net take-home pay of Php5,000 after the required monthlyobligations have been deducted.
Veloso pointed out that GSIS has made paying loan amortization more convenient with additional payment channels for its borrowers. GSIS members may now pay their loan amortization through Bayad centers or M. Lhuillier branches and through online applications of its partner banks, Union Bank of the Philippines and Land Bank of the Philippines.
“Let’s do our part in keeping the pension fund healthy by paying our loans responsibly. Rest assured that we are constantly exploring ways to improve our loan products to help you in time of need,” Veloso said.