Revised Pension Loan Program

Home Retirement Revised Pension Loan Program


The pension loan is open to old-age pensioners under RA 660, PD 1146 and RA 8291.  GSIS further improved the terms of its pension loan program by providing a redemption insurance  for the loan, which  guarantees that the full amount of  funeral and survivorship benefits will be received by the survivors of deceased pensioners.


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 be 78 years old and below; and, (2) has  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 may a pensioner apply for the loan under the revised program?

A pensioner may either apply personally for the loan through the GWAPS kiosk or file an application  in the nearest GSIS office.

 4.  How much may a pensioner borrow under the revised program?

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 borrow 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 is the term of  pension  loan under the revised program?

The pension loan under the revised program shall be payable in 24  months.  The first monthly installment shall become due on the first day of the following month after the loan was granted.

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.  Will a pensioner be allowed to submit a manual application form if his card is defective?

Yes, the over-the-counter facility is allowed if  a  pensioner’s card is defective. A pensioner may also  file an application over the counter if the kiosk or GWAPS system is not functioning or defective.

 8. What are the requirements in filing a pension loan over-the-counter?

The requirements in filing pension loan over the counter are: (1) a filled-out application form; and, (2) a government-issued identification card.

 9. 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 the GSIS  on or before noon.   Application filed through kiosk shall be electronically processed within the day of application.

 10. Will the pension loan be credited immediately after processing?

No, the proceeds of the pension loan shall be credited to the pensioner’s ATM account within three  to five work  days from application.

11. 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.

12.  If a pensioner died 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.

 13.  Does a pensioner need to pay the premium for the loan redemption insurance?

Yes,  the monthly premium rate will depend on the age of the pensioner.


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