Are you working for the government or in the public sector, and you are in dire need of credit? The good news is that the Government Service Insurance Service System (GSIS) will get you sorted. You can apply for GSIS loan using your eCard through the GW@PS kiosks located in all branches, selected government agencies, Robinsons Malls, or online.
GSIS was created by way of Commonwealth Act No. 186 that was passed in 1936. Later on, it was amended under Republic Act No. 8291 (also known as the GSIS act of 1997). It is a social security system for government employees and those working in the public sector. The primary function of the entity is to insure the government and public sector workers against particular contingencies in exchange for the monthly contributions.
Types of loan
It offers various products to assist members and pensioners with their financial needs. These are the various types of loans offered under the scheme:
GSIS housing loans
Previously, the company used to offer housing financing directly to the members and beneficiaries. Currently, it does not offer housing credit as it did in the past because of the lackluster performance of the housing pension fund. The good news is that the company has partnered with Pag-IBIG as part of its commitment to help members realize their dream of home ownership. This means that members and pensioners can enjoy this service through Pag-IBIG.
The Consolidated loan combines five different products into one. Under the program, members who have at least 15 years of service with paid premiums are entitled to borrow a 12-month salary loan. On the other hand, those with more than 25 years of service are eligible for a 14-month loan. Previously, the credit limit for these members was only ten times their salary. The payment term has been extended from six to 10 years for members with more than ten years of paid premiums.
This is a program that a member may avail from his/her life insurance policy. It bears an 8% interest rate and may be paid either through monthly amortization or deduction from a member's existing life insurance policy contract. To be eligible for this product, you must have been insured for at least one year. In addition, you must have updated premium payments with active policies.
GSIS emergency loan
GSIS calamity loan is offered to the government workers and those in the public sector who are adversely affected by calamities. The beneficiaries are expected to repay it within three years or 36 months at an interest rate of 6 percent per year. If this service is renewed, the balance of the outstanding credit will be deducted from the proceeds of the new loan.
GSIS emergency loan during Covid-19 crisis
On April 14, 2020, in the wake of the Coronavirus crisis, Rolando Ledesma Macasaet announced that the members and pensioners across the country were eligible to apply for the GSIS COVID-19 Emergency Loan program online. Members and pensioners can access up to PHP40,000. This is the first emergency lending window opened by the company on a national scale. This move came after the President declared a state of public health emergency in the entire country.
GSIS loan requirements
To qualify for this service, you must fulfill these requirements:
- For the emergency credit, you must be a government employee or a resident in the area that has been declared to be under the state of calamity.
- You must be in active service and not on leave of absence without pay.
- You should not have any arrears in the payment of mandatory social insurance contributions.
- You should not have any credit that has been declared in default.
GSIS loan application
You can easily apply for this service online using this procedure:
- Visit the company website
- Download and fill out the application form
- Submit the application form electronically to an email address designated by GSIS for a particular area.
- When submitting the application form, you will also need to submit an electronic copy of the GSIS temporary or UMID card, and the valid ID (with picture and signature). You should also submit your photo holding the duly completed gsis loan application form. Remember to prepare these documents in JPEG or PDF format
- In the case where the UMID or eCard has been lost, the photo of the borrower holding his or her two valid IDs and a clear photo of the two valid IDs must be submitted.
- After sending the email, you should wait for an email acknowledgement, tentative computation, and conformity from GSIS. You will also receive a notification in case of incomplete or non-compliant documents.
- Once you have submitted the application, it shall be forwarded to the agent for certification.
You can also apply for a loan through the GSIS Wireless Automated Processing System (GW@PS) Kiosk. The GW@PS kiosk resembles the automated teller machine.
There are no documents required when submitting your application using this method. Here are the simple steps you should follow:
- Visit the nearest GSIS office
- Insert your eCard into the GW@PS kiosk card reader. Your personal data will be displayed.
- Tap on the Loans Windows icon to view the various types of services available.
- Select the type of loan that you wish to apply for. You will be able to view the tentative computation. Remember, the loanable amount and payment terms can be changed.
- Once you are done, you will be prompted to update the cellphone number and agree to the Application Agreement.
- Tap on the 'agree' button if you wish to proceed with the application. Click on 'cancel' to cancel the application.
- If you select the 'agree' button, the verification page will open up. Choose the finger that you will use for verification.
- Place the finger that you selected on the biometric scanner to confirm the application.
GSIS loan approval
The application will be forwarded to the authorized official for approval or disapproval. You should wait for an SMS notification on the status of the application to be sent to your phone. If your application is approved, you can withdraw the proceeds anytime from any Megalink, Bancnet and Expressnet ATM located nationwide.
There you have it. A simple and comprehensive guide on how to apply for the GSIS loan. In the current digital age, you don't have to queue at the nearest GW@PS kiosk to get this service. You can apply for it online from the comfort of your home and wait for the application to be approved, and then proceed to withdraw the funds in a designated ATM.