New GSIS Loan Buyout Program Offers Debt Relief

State-run Government Service Insurance System (GSIS) has introduced a loan buyout program that allows government employees to consolidate their debts at significantly lower interest rates, providing much-needed financial relief for state workers.

- - Keisha Ta-asan

Under the MPL Max program, qualified members can borrow up to 19 times their salary or P5 million, whichever is lower, with interest rates as low as six percent and repayment terms extending up to 10 years.

The program eliminates surcharges on existing GSIS loans, waives service fees and includes free loan insurance coverage. Borrowers also have the flexibility to pre-terminate their loans without penalties.

GSIS president and general manager Wick Veloso said the pension fund aims to shield members from excessive interest rates in the lending market.

"Through the MPL Max, we are throwing a lifeline to our members who are weighed down by debt," Veloso said.