Question & AnswerQ&A (GSIS Resolution NO. 190)
The resolution approves the increase in the maximum loanable amount under the GSIS Consolidated Salary Loan (Conso-Loan) Plus Program to a sum equivalent to two (2) times the Basic Monthly Salary (BMS).
It replaces the previous P10,000 or P15,000 increment originally provided in the Conso-Loan Program.
The rate of return is 12%, which is higher than the 5-year Treasury Bond coupon rate of 7.25%.
Previously, it was based on a combination of Basic Monthly Salary and fixed increments ranging from 10,000 to 15,000 pesos, depending on length of service.
Previously, it was 10,000 pesos with no proposed amount. The proposal states 'None' indicating no loanable amount for less than 20 months of service.
The proposed maximum loanable amount is 10 times the Basic Monthly Salary (10 BMS).
The loanable amount increases from 1 BMS + 10,000 pesos to 3 BMS under the proposed scheme.
It was adopted by the GSIS Board of Trustees during the Board Meeting No. 23 on December 20, 2006.
It provides a higher return compared to the 5-year Treasury Bond coupon rate of 7.25%, making it a more attractive option for GSIS funds.
No, the provided text only discusses the increase in the maximum loanable amount and interest rate, without mention of penalties or procedural changes.