Title
GSIS Loan Term and Amount Extension Approval
Law
Gsis No. 203
Decision Date
Dec 11, 2014
GSIS Resolution No. 203 approves the extension of the Consolidated Salary Loan term from six to ten years and increases the maximum loanable amount for eligible borrowers, enhancing financial support for members with longer premium payment periods.
A

Basis for Amendments and Review

  • The Financial Management Group reviewed the conditions of available GSIS loan windows to increase loans for members funded by the Social Insurance Fund.
  • The review referenced Section 36 (c) of Republic Act No. 8291.

Extension of Loan Term

  • The Conso-Loan maximum term was extended from six (6) years to ten (10) years.
  • This extension applies to borrowers with at least ten (10) years of Period with Premium Payments (PPP).
  • Extending the loan term reduces amortization by about 27%, providing financial relief to borrowers.

Increase in Maximum Loanable Amount

  • Borrowers with at least fifteen (15) years of PPP are eligible for increased maximum loanable amount.
  • The maximum loanable amounts were increased based on the PPP as follows:
    • Less than 20 months: ₱10,000 (no change)
    • More than 20 months: 3x Basic Monthly Salary (BMS) (no change)
    • More than 40 months: 4x BMS (no change)
    • More than 5 years: 7x BMS (no change)
    • More than 10 years: 10x BMS (no change)
    • More than 15 years: increased from 10x to 12x BMS
    • More than 25 years: 14x BMS (no change)

Amendment of First Monthly Amortization Due Date

  • The former three-month grace period was effectively removed.
  • The first monthly amortization due date depends on the loan granting date:
    • Loan granted on or before the 10th day of the month: amortization due on the 10th day of the following month.
    • Loan granted after the 10th day: amortization due on the 10th day of the next following month.

Official Amendments and Confirmations

  • The amendments supersede and amend previous Resolutions No. 135 (August 5, 2009), No. 129 (August 16, 2012), and No. 134 (November 28, 2013).
  • Certification and confirmation were made by relevant GSIS officials including the Corporate Secretary and Board Trustees.

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