GSIS Loan Term and Amount Extension Approval

The Board actions are anchored on the authority under Section 36 (c) of R.A. No. 8291, tied to increasing allocations of members’ loans in the Social Insurance Fund.
The resolution states that the Financial Management Group reviewed existing GSIS loan windows available to members to increase the loan allocation in the Social Insurance Fund.
The resolution’s stated impact for the Conso-Loan term extension is that extending the maximum term from six (6) years to ten (10) years will reduce loan amortization by approximately twenty-seven percent (27%).
The resolution also states that extending the term may increase the maximum loanable amount of up to ten (10) times the Basic Monthly Salary (BMS) by thirty-seven percent (37%).

The amendments apply to the GSIS Consolidated Salary Loan Plus (Conso-Loan Plus) Program under PPG No. 201-09.
The resolution applies the extended maximum term to borrowers with at least ten (10) years of Period with Premium Payments (PPP).
The resolution applies the increased maximum loanable amount to borrowers based on their PPP categories.
The amended rules for the due date of the first monthly amortization apply based on the day of the month that the loan was granted.

The maximum term of the Conso-Loan is extended from six (6) years to ten (10) years for borrowers with at least ten (10) years of PPP.
The maximum loanable amount is increased for borrowers with at least fifteen (15) years of PPP, using the following PPP-to-maximum-loanable-amount schedule:
- For < 20 months PPP: From 10,000.00; To 10,000.00.
- For > 20 months PPP: From 3 x BMS; To 3 x BMS.
- For > 40 months PPP: From 4 x BMS; To 4 x BMS.
- For > 5 years PPP: From 7 x BMS; To 7 x BMS.
- For > 10 years PPP: From 10 x BMS; To 12 x BMS.
- For > 15 years PPP: From 10 x BMS; To 12 x BMS.
- For > 25 years PPP: From 14 x BMS; To 14 x BMS.
The due date rule for the first monthly amortization is amended to effectively remove the three-month grace period, based on the loan grant day as follows:
- If the loan is granted on a date On or before the 10th day of the month, the first monthly amortization is due on the 10th day of the following month.
- If the loan is granted after the 10th day of the month, the first monthly amortization is due on the 10th day of the next following month.

The Board approves and confirms the amendments to PPG No. 201-09 proposed by the Senior Vice President, Financial Management Group, in her Memorandum dated 24 November 2014.
The Board approves the term extension and approves the increase in the maximum loanable amount for qualified borrowers.
The Board approves the amendment to the due date of the first monthly amortization that removes the three-month grace period effect.
The Board confirms that these amendments are to be incorporated into the Conso-Loan Plus program rules under PPG No. 201-09.

Board Resolution No. 135 dated 5 August 2009 approving PPG No. 201-09 is amended by this resolution.
The subsequent amendments to PPG No. 201-09 made under Board Resolution No. 129 dated 16 August 2012 and Board Resolution No. 134 dated 28 November 2013 are amended by this resolution.
The resolution’s operative effect is to update the program rules on (1) the maximum term, (2) the maximum loanable amount by PPP category, and (3) the due date of the first monthly amortization.

The resolution is Certified Correct by Atty. Maria Theresa Abesamis-Raagas, Corporate Secretary.
The resolution is Confirmed by Daniel L. Lacson, Jr. (on leave), Chairman.
The resolution is also confirmed by Robert G. Vergara (Vice-Chairman), and trustees including Karina Constantino-David, Gregorio T. Yu, Roman Felipe S. Reyes, Mario J. Aguja, Elisea G. Gozun, Romeo N. Alip, Geraldine Marie Berberabe-Martinez, and Francisco T. Duque III (on leave).