How to Apply for GSIS Policy Loan (Consolidated Loan)
The GSIS Consolidated Loan, formerly known as the Policy Loan, is a multi-purpose loan program offered by the Government Service Insurance System (GSIS) to active government employees. This loan allows eligible GSIS members to borrow money for any legal purpose — whether for home improvement, education, medical expenses, business, or personal needs. The Consolidated Loan merged the old Policy Loan and Computer Loan programs into a single, streamlined lending product with competitive interest rates and convenient salary deduction repayment.
In this tutorial, you will learn step by step how to apply for a GSIS Consolidated Loan (Policy Loan), including the eligibility requirements, documentary requirements, loan computation, and the complete application process through the eGSISMO online portal. Whether you are a teacher, police officer, nurse, or any government employee, this guide will help you understand everything you need to know about the GSIS Policy Loan.
Who Can Apply?
Eligibility Requirements
To qualify for the GSIS Consolidated Loan (Policy Loan), you must meet all of the following requirements:
- Active GSIS Member — You must be an active government employee with regular GSIS premium contributions being remitted by your agency. Separated, retired, or inactive members are not eligible.
- At Least 1 Year of Creditable Service — You must have completed at least one (1) year of continuous government service with corresponding GSIS premium payments.
- Must Be Insurable — You must be insurable at the time of application. This means you must not have a condition that renders you uninsurable under GSIS guidelines (generally, members under 65 years old and not permanently disabled).
- No Pending Administrative Case — You must not have a pending administrative or criminal case that may result in your dismissal from government service. A pending case may cause your loan application to be put on hold.
- Agency Has Remittance Agreement with GSIS — Your employing agency must have an existing remittance agreement or updated Memorandum of Agreement (MOA) with GSIS for loan repayment through salary deduction.
- Updated GSIS Records — Your personal information, service records, and salary data in the GSIS system must be up to date. Make sure your agency has submitted your latest salary grade and step increment to GSIS.
Tip: If you are unsure whether you are eligible, log in to your eGSISMO account at egsismo.gsis.gov.ph and check your loan eligibility and loanable amount under the "Loans" section. You can also visit the nearest GSIS branch office to inquire about your eligibility.
Loan Details
Here is a summary of the key features and terms of the GSIS Consolidated Loan (Policy Loan):
| Loan Feature | Details |
|---|---|
| Loan Type | Consolidated Loan (formerly Policy Loan / Computer Loan) |
| Loan Amount | Up to 14 times your basic monthly pay (based on your present basic monthly salary), subject to your Net Loan Proceeds being positive after deducting outstanding loan balances |
| Interest Rate | 6% per annum, diminishing balance (interest is computed on the remaining principal balance, making it more affordable over time) |
| Repayment Period | 6 years (72 months) via automatic salary deduction processed through your employing agency |
| Service Fee | A service fee is deducted from the loan proceeds upon release. The service fee may vary; check the latest GSIS schedule of fees for the current rate. |
| Processing Time | Approximately 3 to 10 working days after the agency certifies the application and GSIS completes processing. Online applications via eGSISMO may be faster. |
| Disbursement Method | Via GSIS UMID eCard, check, or bank transfer (depending on the member's selected option) |
| Loan Purpose | Multi-purpose — can be used for any legal purpose (education, medical, home improvement, personal needs, business, debt consolidation, etc.) |
| Renewal | You may renew (re-loan) after paying at least 50% of your outstanding consolidated loan principal. The remaining balance will be deducted from the new loan proceeds. |
Note: The maximum loanable amount of 14 times basic monthly pay is subject to the condition that your monthly loan amortization (including existing GSIS loan obligations) does not exceed your net take-home pay requirement. GSIS ensures that you still have enough take-home pay after all deductions.
Step-by-Step: How to Apply for GSIS Policy Loan
Follow these six (6) steps to successfully apply for a GSIS Consolidated Loan (Policy Loan). The process is primarily done online through the eGSISMO portal, with agency certification handled by your HR or administrative officer.
Check Your Eligibility and Loanable Amount
Before applying, verify that you are eligible for the GSIS Consolidated Loan and check how much you can borrow. You can do this through:
- eGSISMO Portal: Log in to your eGSISMO account at egsismo.gsis.gov.ph. Navigate to the "Loans" section and check the "Consolidated Loan" tab. The system will display your maximum loanable amount based on your salary and service.
- GSIS Branch Office: Visit any GSIS branch or extension office and request a loan eligibility check. Bring a valid ID and your GSIS UMID card.
- GSIS Hotline: Call the GSIS Contact Center at (02) 8847-4747 and inquire about your loan eligibility and loanable amount.
Important: Your loanable amount is computed as up to 14 times your basic monthly pay, minus any outstanding GSIS loan balances (Consolidated Loan, Emergency Loan, Enhanced Salary Loan, etc.). Make sure your agency has updated your salary information in the GSIS system.
Apply Online via eGSISMO
The primary method of applying for a GSIS Consolidated Loan is through the eGSISMO (Electronic GSIS Member Online) portal. Follow these sub-steps:
- Log in to eGSISMO: Go to egsismo.gsis.gov.ph and log in using your GSIS BP (Billing Period) number or Member ID and your password. If you don't have an account yet, you will need to register first.
- Navigate to Loans: Once logged in, go to the "Services" menu and select "Loans." Then click on "Consolidated Loan" or "Apply for Consolidated Loan."
- Enter Loan Amount: The system will show your maximum loanable amount. Enter the amount you wish to borrow (up to the maximum displayed). You can choose to borrow less than your maximum loanable amount.
- Choose Disbursement Method: Select how you want to receive your loan proceeds:
- GSIS UMID eCard — Loan proceeds are credited directly to your UMID card (fastest method)
- Check — A check will be issued and can be picked up at the GSIS branch
- Bank Transfer — Proceeds are transferred to your registered bank account
- Review and Submit: Carefully review all the loan details, including the loan amount, interest rate, monthly amortization, net proceeds (after deductions for outstanding loans and service fee), and repayment period. Once satisfied, click "Submit" to file your application.
Tip: Make sure you have a stable internet connection when filing your loan application. After submission, take a screenshot or save the confirmation page with your reference number for your records.
Agency Certification / Approval
After you submit your online application, your employing agency's HR or administrative officer must certify and approve your loan application. This step is crucial and involves:
- Employment Certification: Your agency confirms that you are an active government employee in their office and that your employment status is regular or permanent.
- Salary Verification: The HR officer verifies your current basic monthly salary and confirms that the salary data in the GSIS system matches your actual salary.
- Salary Deduction Capacity: The agency certifies that your net take-home pay after all deductions (including the new loan amortization) meets the minimum take-home pay requirement.
- No Pending Case Certification: The agency certifies that you have no pending administrative or criminal case that could result in dismissal.
Note: Coordinate with your HR or admin officer to ensure they process the agency certification promptly. Delays at this step are common — follow up with your agency if the certification is not processed within a few days.
GSIS Processing and Approval
Once your agency has certified your application, GSIS will process and evaluate your loan. During this stage:
- GSIS verifies your membership records, service history, and premium payment status
- GSIS checks for any outstanding loan balances (Consolidated Loan, Emergency Loan, Enhanced Salary Loan, etc.) that need to be deducted from your new loan proceeds
- GSIS computes the final net loan proceeds after deducting outstanding balances, service fees, and any applicable insurance premiums
- GSIS evaluates whether your monthly amortization is within the allowable deduction limit relative to your salary
- Upon approval, GSIS will notify you through the eGSISMO portal, SMS, or email
Processing time is typically 3 to 10 working days after the agency certification is completed. You can track the status of your application through your eGSISMO account under "Loan Status" or "Transaction History."
Loan Disbursement
After GSIS approves your loan, the net loan proceeds will be released through your chosen disbursement method:
- GSIS UMID eCard: The loan proceeds are electronically credited to your GSIS UMID card. You can withdraw the money from any UMID-accredited ATM. This is the fastest disbursement method.
- Check: A check will be prepared by GSIS and can be picked up at your designated GSIS branch office. Bring a valid ID when claiming.
- Bank Transfer: The proceeds will be transferred to your registered bank account. Make sure your bank details in the GSIS system are correct and up to date.
Important: The net loan proceeds you receive will be less than the total approved loan amount. Deductions include outstanding loan balances (if any), service fee, and applicable insurance premiums. Review the loan breakdown in your eGSISMO account before expecting a specific amount.
Repayment via Salary Deduction
Once your loan is released, repayment begins through automatic monthly salary deduction. Here's what you need to know about the repayment process:
- Your monthly amortization is automatically deducted from your salary by your employing agency and remitted to GSIS
- The repayment period is 72 months (6 years) with equal monthly amortization payments
- Interest is computed at 6% per annum on a diminishing balance, meaning you pay less interest as your principal decreases
- Your agency is responsible for deducting and remitting your loan payments to GSIS on time
- You can monitor your loan balance and payment history through your eGSISMO account
- If you transfer to another government agency, coordinate with both the old and new agencies to ensure continuity of your loan deductions
Tip: Check your payslip every month to verify that your GSIS loan amortization is being properly deducted. If you notice any discrepancies, immediately report them to your HR officer and GSIS.
Loan Computation: Sample Amounts
The table below shows sample loan computations based on different basic monthly salary levels. The maximum loanable amount is up to 14 times the basic monthly pay. The monthly amortization is computed based on a 6% annual interest rate (diminishing balance) over 72 months.
| Basic Monthly Pay | Max Loanable Amount (14x) | Est. Monthly Amortization | Total Repayment (72 months) |
|---|---|---|---|
| ₱15,000 | ₱210,000 | ₱3,486 | ₱251,019 |
| ₱20,000 | ₱280,000 | ₱4,648 | ₱334,692 |
| ₱25,000 | ₱350,000 | ₱5,810 | ₱418,365 |
| ₱27,000 | ₱378,000 | ₱6,275 | ₱451,834 |
| ₱30,000 | ₱420,000 | ₱6,972 | ₱502,038 |
| ₱35,000 | ₱490,000 | ₱8,134 | ₱585,711 |
| ₱40,000 | ₱560,000 | ₱9,296 | ₱669,384 |
| ₱50,000 | ₱700,000 | ₱11,621 | ₱836,730 |
Disclaimer: The amounts above are estimates based on a 6% per annum diminishing balance interest rate over 72 months. Actual loan amounts, amortizations, and total repayment may vary depending on GSIS policy updates, your outstanding loan balances, service fee deductions, and other factors. Always check the latest computation on the eGSISMO portal or at your nearest GSIS branch office.
Complete Example: Juan Applies for a GSIS Consolidated Loan
Scenario
Juan Dela Cruz is a government employee working as a Teacher III at a public elementary school in Manila. He has been in government service for 8 years. His basic monthly salary is ₱27,000. He wants to apply for a GSIS Consolidated Loan to fund his house renovation and his child's college tuition.
| Detail | Juan's Information |
|---|---|
| Name | Juan Dela Cruz |
| Position | Teacher III, Public Elementary School |
| Years in Government Service | 8 years |
| Basic Monthly Salary | ₱27,000 |
| Maximum Loanable Amount (14x) | ₱378,000 |
| Outstanding Loan Balance | ₱50,000 (previous Consolidated Loan) |
| Loan Purpose | House renovation and child's college tuition |
Juan's Step-by-Step Process:
Step 1 — Eligibility Check: Juan logs in to his eGSISMO account and navigates to the Loans section. The system confirms that he is eligible for a Consolidated Loan. His maximum loanable amount is displayed as ₱378,000 (14 x ₱27,000). However, he has an outstanding Consolidated Loan balance of ₱50,000.
Step 2 — Online Application: Juan clicks "Apply for Consolidated Loan" in eGSISMO. He decides to borrow the full ₱378,000. He selects his GSIS UMID eCard as the disbursement method for faster release. He reviews the breakdown:
| Approved Loan Amount | ₱378,000.00 |
| Less: Outstanding Loan Balance | (₱50,000.00) |
| Less: Service Fee (estimated) | (₱3,780.00) |
| Less: Insurance Premium (if applicable) | (₱1,890.00) |
| Net Loan Proceeds (estimated) | ₱322,330.00 |
Step 3 — Agency Certification: After submitting his application online, Juan informs his school principal and HR coordinator about the pending GSIS loan application. The HR officer logs in to the agency eGSISMO portal and certifies Juan's employment status, salary, and that he has no pending administrative case. The certification is completed within 2 days.
Step 4 — GSIS Processing: After the agency certification, GSIS processes Juan's application. GSIS verifies his membership records, checks his outstanding loan, and computes the net proceeds. The processing takes 5 working days. Juan receives an SMS notification that his loan has been approved.
Step 5 — Disbursement: Since Juan selected UMID eCard as his disbursement method, the net loan proceeds of approximately ₱322,330 are credited to his GSIS UMID card. Juan withdraws the money from a nearby ATM and uses it for his house renovation and his child's tuition fee.
Step 6 — Repayment: Starting the following month, Juan's monthly salary is automatically deducted with his loan amortization of approximately ₱6,275 per month for 72 months. Juan checks his payslip every month to ensure the correct amount is being deducted. He also monitors his loan balance through eGSISMO.
Result: Juan successfully received his GSIS Consolidated Loan proceeds and was able to fund his house renovation and child's education. His loan will be fully paid off in 6 years through automatic salary deductions, with a total repayment of approximately ₱451,834 (principal + interest).
Frequently Asked Questions (FAQ)
1. Can I renew my GSIS Consolidated Loan before fully paying it off?
Yes, you can renew (re-loan) your GSIS Consolidated Loan even if you have not fully paid off the existing one. However, you must have paid at least 50% of the outstanding principal of your current loan before you can apply for a renewal. The remaining balance of your old loan will be deducted from the proceeds of the new loan. This means you will receive a lower net amount, but you get a fresh loan with a new 72-month repayment period.
2. Can I prepay or pay off my GSIS Consolidated Loan early?
Yes, GSIS allows prepayment or full settlement of your Consolidated Loan before the end of the 72-month repayment period. You can make advance payments or pay the entire outstanding balance at any time. Prepayment reduces the total interest you pay since interest is computed on a diminishing balance. To prepay, visit a GSIS branch office or inquire through the eGSISMO portal about the prepayment process and the exact amount needed for full settlement.
3. Will my GSIS Policy Loan affect my retirement benefits?
Your GSIS Consolidated Loan does not reduce your retirement benefits directly. However, if you retire with an outstanding loan balance, the remaining balance will be deducted from your retirement proceeds (lump sum amount). This means you will receive a lower lump sum retirement benefit. Your monthly pension, however, will not be affected by the loan deduction. It is advisable to pay off or reduce your loan balance before retirement to maximize your lump sum benefit.
4. What happens to my loan if I transfer to another government agency?
If you transfer to another government agency, your GSIS loan obligation continues. You need to coordinate with both your old and new agencies to ensure that the monthly loan amortization deduction is transferred to your new payroll. Inform your new agency's HR office about your existing GSIS loan so they can include it in your salary deductions. Failure to maintain regular payments may result in penalties or additional interest charges.
5. Can I apply for a GSIS Consolidated Loan and an Emergency Loan at the same time?
Yes, the GSIS Consolidated Loan and Emergency Loan are separate loan programs. You can have both loans simultaneously, provided that your total monthly loan deductions (amortizations for all GSIS loans) do not exceed the allowable percentage of your salary and that you still meet the minimum net take-home pay requirement. Each loan has its own terms, interest rates, and repayment periods.
6. What if my loan application is denied? Can I re-apply?
If your GSIS Consolidated Loan application is denied, you will receive a notification with the reason for the denial. Common reasons include: insufficient service credits, outstanding premium arrears, agency not having a remittance agreement with GSIS, pending administrative case, or salary data not updated in the GSIS system. Once you resolve the issue that caused the denial, you can re-apply. There is no waiting period — you can submit a new application as soon as the issue is resolved.
Important Reminders
- Keep your GSIS records updated. Make sure your personal information, salary grade, step increment, beneficiaries, and contact details are current in the GSIS system. Outdated records can delay or prevent loan processing.
- Verify your loanable amount before applying. Always check your available loanable amount through eGSISMO before filing a loan application. The displayed amount already accounts for your existing loan balances.
- Coordinate with your agency HR officer. Agency certification is a required step. Inform your HR officer promptly about your loan application to avoid delays in the certification process.
- Understand the net proceeds vs. approved amount. The amount credited to your account (net proceeds) will be less than the approved loan amount due to deductions for outstanding balances, service fees, and insurance premiums.
- Monitor your loan payments. Regularly check your payslip and eGSISMO account to ensure that your monthly amortization is being correctly deducted and remitted to GSIS by your agency.
- Plan for retirement. If you are nearing retirement age, consider paying off your GSIS loan balance before retirement to maximize your lump sum retirement benefit. Outstanding loan balances will be deducted from your retirement proceeds.
- Beware of fixers and scams. Apply only through official GSIS channels — the eGSISMO portal or GSIS branch offices. Never give your GSIS login credentials, UMID card, or personal information to unauthorized individuals.
- Know the difference between loan programs. The Consolidated Loan (Policy Loan) is different from the Emergency Loan. The Consolidated Loan has a higher loanable amount (14x salary) and longer repayment period (72 months), while the Emergency Loan has a lower amount and shorter repayment term.
- Save your reference numbers. After submitting your online loan application, save the confirmation page and reference number. You will need this to track your application status and for any follow-ups with GSIS.
Need Help?
If you need assistance with your GSIS Consolidated Loan application, have questions about your eligibility, or encounter issues with the eGSISMO portal, you can reach GSIS through the following channels:
GSIS Contact Center
(02) 8847-4747
Monday to Friday, 8:00 AM – 5:00 PM
Other Contact Options:
- Email: contactus@gsis.gov.ph
- GSIS Branch Offices: Visit any GSIS branch or extension office nationwide for in-person assistance. Bring your GSIS UMID card and a valid government ID.
- GSIS Social Media: Follow GSIS on Facebook, Twitter, and other social media platforms for announcements and updates on loan programs.
- Agency HR Office: For loan deduction concerns, payroll issues, and agency certification questions, coordinate directly with your employing agency's HR or administrative office.
Disclaimer
This guide is provided for general informational purposes only. The requirements, steps, fees, and procedures mentioned here may vary depending on the GSIS branch you visit. We recommend visiting your nearest GSIS branch first to confirm the specific requirements and process before preparing your documents.