GSIS Loan Programs Hit Record PHP 289B Disbursement

The Government Service Insurance System’s (GSIS) Multi-Purpose Loan (MPL) programs reached unprecedented heights in 2024, disbursing a record PHP 289 billion to over 1.2 million government employees nationwide.

Since its launch in September 2023, the GSIS MPL Flex program has released PHP 282 billion to 1,049,246 members, marking a 35.5% increase from the PHP 208.17 billion disbursed during its first year. Meanwhile, an additional PHP 7.2 billion was granted to 197,675 members under MPL Lite.

In just 16 months, MPL Flex has become a key pillar of GSIS’s financial assistance initiatives, offering government employees loans of up to 14 times their monthly base pay, capped at PHP 5 million. The loans come with a competitive 6% annual interest rate and repayment terms of up to 15 years.

“The rapid growth of MPL Flex in less than two years demonstrates both the program’s effectiveness and the significant demand for flexible financial solutions among our members,” said GSIS President and General Manager Wick Veloso.

Empowering Communities Through Financial Flexibility

The impact of MPL Flex extends beyond individual borrowers to support entire communities.

One inspiring story is that of Roland Daleon Satin, a Master Teacher at Mayo Crossing Elementary School in Lucena City. Satin used his MPL Flex loan to establish a computer shop, serving remote workers and students in the community.

When blended learning emerged during the pandemic, Satin reduced his shop’s rates to help students access affordable computer and printing services, enabling them to continue their education.

“I saw an opportunity to not only create additional income for my family but also support our community’s needs,” Satin said. “By offering affordable computer access and printing services to students, we are helping them pursue their education while building a sustainable business.”

“This success story — one of many — highlights how MPL Flex empowers our members to grow their enterprises and secure additional income streams,” Veloso said. “The program enables our members to diversify their investments while addressing their families’ needs.”

Digital Transformation for Faster Loan Processing

GSIS has embraced digital transformation to enhance accessibility and convenience for its members. The GSIS Touch mobile app provides 24/7 access to loan services, allowing members to apply, track applications, and manage accounts from anywhere.

This innovation has significantly reduced processing times, with approved loans credited to members’ e-Card accounts within 24 hours of agency approval.

Strong Financial Backing Ensures Sustainability

The success of GSIS loan programs is underpinned by robust financial performance.

As of the third quarter of 2024, GSIS reported an 8% growth in total assets, reaching PHP 1.8 trillion. Net income from operations surged 58% to PHP 120 billion, while overall revenues increased 27% to PHP 258 billion from PHP 204 billion the previous year.

The non-life insurance business also performed strongly, generating PHP 8 billion in gross premiums written, a 60% increase from the PHP 5.5 billion recorded in 2023.

“Our strong financial performance strengthens our capacity to serve our members through accessible loan programs while securing the long-term sustainability of their benefits,” Veloso said.

The GSIS continues to demonstrate its commitment to improving the lives of government employees by providing innovative financial solutions and ensuring the sustainability of its services.