GSIS offers better loan terms for teachers

MANILA, Philippines — Public school teachers can avail themselves of a loan from the Government Service Insurance System (GSIS) with lower interest rates and repayment terms.

“We assure the DepEd (Department of Education) and all our teachers that the GSIS is continuously working to make our lending process and loan calculations clearer,” GSIS president and general manager Wick Veloso said.

In a letter to Vice President and DepEd Secretary Sara Duterte, Veloso gave assurance that the GSIS is fully aligned with DepEd’s agenda in assisting teachers to improve their financial capability.

Early this month, the GSIS launched its Multipurpose Loan Flex program (MPL Flex) for teachers and other GSIS members.

The new loan program offers an interest rate of six percent for members with a minimum of three years of premium contributions and an extended repayment period of up to 15 years.

MPL Flex allows members with one month of paid premium to apply for the loan, which provides a lower service fee compared to those offered by private lenders.

Teachers and members may apply for the MPL Flex through the GSIS Touch mobile app.

In June, the pension fund introduced a detailed payment schedule for multipurpose and emergency loans, providing teachers with a clearer presentation on how their payments are allocated between the principal and interest.

The pension fund also revised its penalty interest computation for defaulted loans.

“If these outstanding amounts are offset against retirement or separation benefits, teachers could potentially receive diminished proceeds,” Veloso said.

However, he stressed the need for timely and accurate loan repayments, saying unpaid loans accrue interest and penalties.