GSIS gives better loan terms, clearer statement of accounts for teachers

State pension fund Government Service Insurance System (GSIS) is taking new steps to help foster greater transparency in computing teachers’ loans as it launched a new lending program with lower interest rates and longer repayment terms.

“We assure the DepEd and all our teachers that the GSIS is continuously working to make our lending process and loan calculations clearer,” GSIS President and General Manager Wick Veloso said.

In a letter to DepEd Secretary and Vice President Sara Duterte, Veloso assured the DepEd that the GSIS is fully aligned with the DepEd MATATAG agenda in assisting teachers to improve their financial capability.

Earlier this month, the GSIS has launched the GSIS Multi-Purpose Loan Flex program (MPL Flex) designed for teachers and other GSIS members. The new loan program offers a reduced interest rate from 7% to 6% for members with a minimum of three years of premium contributions and an extended repayment period of up to 15 years.

MPL Flex further enables members with just one month of paid premium to apply for the loan and provides a lower service fee than the rate offered by private lenders.

Teachers and members may apply for the MPL Flex via the GSIS Touch mobile app ensuring a streamlined and paperless loan application process.

Starting in June, the pension fund had introduced a detailed payment schedule for Multi-Purpose and emergency loans. This initiative provides teachers with a much clearer presentation on how their payments are allocated between principal and interest. By offering a comprehensive breakdown of the payment schedule, borrowers will have a clearer view of their loan obligations.

And to further improve the terms, the pension fund also revised its penalty interest computation for defaulted loans.

“If these outstanding amounts are offset against retirement or separation benefits, teachers could potentially receive diminished proceeds,” Veloso pointed out as he reiterated the need for timely and accurate loan repayments as he stressed that unpaid loans accrue interest and penalties.

For more details on the MPL Flex and other programs, members may visit the GSIS website (, the GSIS FB page ( or call the contact center at 8.847.4747.