A pension loan is offered to qualified old-age GSIS pensioners who have no outstanding service loans being amortized under the Choice of Loan Amortization Schedule for Pensioners (CLASP) at the time of filing. The loan amount that may be availed is based on the Basic Monthly Pension (BMP) and the pensioner’s age as of the date of the receipt of the application or the time the pensioner applied through the kiosk, as shown in Table 1. The pensioner has the option to choose a loan amount lower than his maximum loan amount.
|MAXIMUM LOAN AMOUNT|
|Age of Pensioner||Maximum Loanable Amount|
|Below 65 years old||6||100,000.00|
|65 to 69 years old||4||60,000.00|
|70 years old and above||2||20,000.00|
Frequently Asked Questions on the Revised Pension Loan Program
1. Who are qualified to borrow under the Revised Pension Loan Program?
To qualify under the revised Pension Loan Program, the old-age pensioner must: (1) be seventy eight years old and below; and, (2) have no outstanding service loans under the Choice of Loan Amortization Schedule for Pensioners (CLASP).
2. Are survivorship pensioners qualified to borrow under the revised program?
No. Only regular old-age pensioners are qualified to borrow under the revised program.
3. How can the pensioner apply for the loan under the revised program?
The pensioner shall apply personally for the loan through the GWAPS kiosk or by filing an application form for pension loan in any GSIS office.
4. How is the loan amount of a pensioner determined?
The monthly pension and age of the pensioner as of the date of receipt of the application or the time the pensioner applied through kiosk shall be considered in determining the gross loan amount.
The maximum limit of loan amount for pensioners who are below 65 is equivalent to six times their monthly pension but not exceeding Php100,000. Pensioners who are 65 to 69 years old may lend the maximum amount equivalent to four times their monthly pension but not higher than Php60,000. Pensioners who are 70 to 78 years old may take out a loan worth two times their monthly pension but not more than Php20,000.
5. What are the terms of the pension loan under the revised program?
The pension loan under the revised program is payable in 24 months with an interest rate of 10% per annum. The first monthly installment shall become due on the first day of the following month after the loan was granted. If a loan is granted in January, the first monthly installment shall become due on the first day of February.
6. How can pensioners repay the loan?
The monthly installment of the pension loan shall be deducted from the monthly pension of the borrower.
7. What are the other fees to be charged and deducted from the proceeds of the loan?
A service fee of 1% of the gross loan shall be charged and deducted from the proceeds of the loan.
8. Will a pensioner be allowed to submit a manual application form if his eCard is defective?
Yes, an over-the-counter facility is allowed if the pensioner’s card is defective. A pensioner may also resort to filing an application over-the-counter.
9. What are the requirements in filing a pension loan over-the-counter?
The requirements in filing pension loan over the counter are: (1) a completed application form; and (2) a government-issued identification card.
10. How long is the processing time of a pension loan under the revised program?
A pension loan shall be processed within the day of filing if the application is received by GSIS on or before 12:00 noon. Application filed through kiosk shall be electronically processed within the day of application.
11. Will the pension loan be credited immediately after processing?
No. The proceeds of the pension loan shall be credited to the pensioner’s eCard account within three to five working days from application.
12. Is the pension loan under the revised program renewable?
Yes. Pensioners shall be allowed to renew their pension loan after paying the required 24 monthly installments.
14. If the pensioner passed away before the pension loan is fully paid, will the outstanding balance be deducted from the ensuing funeral and survivorship benefits?
No. Subsequent claim for funeral and/or survivorship benefits shall not be answerable for the balance of the pension loan. All loan borrowers under the pension loan program shall be covered by a loan redemption insurance that will waive the payment of the outstanding balance in the event of death of the pension loan borrower.
14. Does the pensioner have to pay the premium for the loan redemption insurance?
Yes. The monthly premium rate will depend on the age of the pensioner.