Guide on GSIS Policy Loan 2023 Offer for Qualified Members
GSIS POLICY LOAN – In times of financial needs, you can obtain a cash solution based on the value of your insurance policy.
In the Philippines, millions of Filipinos are insured through their membership under the Government Service Insurance System or more popularly called GSIS. The state-run social insurance giant offers either the Life Endownment Policy (LEP) or the Enhanced Life Policy (ELP).
Government employees in the country are required to maintain an active membership to the GSIS. It is in line with the state’s pursuit to help the government workers prepare for their retirement as well as to widen their options in times of financial needs.
GSIS members who have updated accounts may qualify for loans and one of the offers is the GSIS Policy Loan. Under it, you can obtain cash based on the value of your insurance policy whether it is the Life Endownment Policy (LEP) or the Enhanced Life Policy (ELP).
Who are qualified to apply for the Policy Loan offer? It is open for members who have been insured under the Life Endownment Policy (LEP) or the Enhanced Life Policy (ELP) for at least a year already, in active service, and have no pending administrative or criminal case.
How much you may borrow under the loan offer? The loanable amount is actually depending on whether you are insured under the Life Endownment Policy (LEP) or the Enhanced Life Policy (ELP). Here’s a guide:
- For members who are ELP-holders, the maximum loanable amount is up to an equivalent of 70% of the accumulated termination value of your policy
- For members who are LEP-holders, the maximum borrowing amount allowed is up to an equivalent of 50% of your cash value
With regards to the interest rate that the Government Service Insurance System implements under the GSIS Policy Loan, it is also dependent if the borrower is insured under the ELP or ELP. The state-run social insurance entity implements an 8% interest rate compounded every year under the ELP and 8% interest rate compounded on a monthly basis under the LEP.
To apply for the Policy Loan, you may also do it through the GWAPS kiosk using your eCard or UMID Card. With regards to the payment for the loan, it can be under a fixed monthly due or it may also be deducted upon the policy’s renewal, maturity, or termination of the policy.
