Question & AnswerQ&A (GSIS Resolution No. 203)
The GSIS Consolidated Salary Loan Plus (Conso-Loan Plus) Program is a loan facility provided by the Government Service Insurance System (GSIS) that allows members to consolidate their existing loans and avail of an additional loan amount, subject to certain terms and conditions.
The GSIS Consolidated Salary Loan Plus Program was governed by Resolution No. 135 dated 5 August 2009, and subsequent amendments under Resolution No. 129 dated 16 August 2012 and Resolution No. 134 dated 28 November 2013.
The review was conducted in accordance with Section 36(c) of Republic Act No. 8291, which pertains to the Government Service Insurance System Act of 1997.
The maximum term for the Consolidated Salary Loan Plus was extended from six years to ten years for borrowers with at least ten years of Period with Premium Payments (PPP).
Extending the maximum term from six to ten years reduces the loan amortization by approximately twenty-seven percent (27%).
The maximum loanable amount was increased from ten times the Basic Monthly Salary (BMS) to twelve times the BMS for borrowers with at least fifteen (15) years of Period with Premium Payments (PPP).
The maximum loanable amounts are as follows: less than 20 months - 10,000 pesos; more than 20 months - 3 x BMS; more than 40 months - 4 x BMS; more than 5 years - 7 x BMS; more than 10 years - 10 x BMS; more than 15 years - 12 x BMS; more than 25 years - 14 x BMS.
The grace period of three months was effectively removed. The first monthly amortization is due on the 10th day of the month following the loan granting date if the loan was granted on or before the 10th day of the month; otherwise, the due date is the 10th day of the next following month.
The amendments were approved by the GSIS Board through Board Resolution No. 203 dated 11 December 2014, confirmed by the Chairman and Trustees of the GSIS Board.
Board Resolution No. 203 amends the provisions of the prior resolutions, namely Board Resolution No. 135 (2009), Resolution No. 129 (2012), and Resolution No. 134 (2013), thereby updating the terms, loanable amounts, and payment schedules of the Conso-Loan Plus Program.