GSIS MULTI-PURPOSE LOAN BUY-OUT (MPB) PROGRAM

A. GENERAL POLICIES

1. The Agency Head will enter into a Memorandum of Agreement (MOA) with the GSIS where the Agency will commit to undertake the following:

a) The Agency shall prioritize the payment of MPB over and above the payment of other loans taken by personnel from other lending institutions. Consistently, the Agency shall prioritize the deductions from its payroll of the monthly amortizations due on the loans taken by its personnel under MPB, until its full payment;

b) The Agency shall ensure the timely payment of all loan repayments due from the borrowers, which must be remitted to the GSIS not later than the 10th day of the calendar month following the due month;

c) The Agency undertakes to withhold any or all benefits due to the employee upon separation from service (i.e., terminal leave benefi:), as payment for outstanding GSIS loan obligations, pursuant to GSIS Memorandum Circular No.005, series of 2018;

d) The Agency shall provide the GSIS a duly recognized and certified list of lending institutions irrespective of whether or not accredited under the automatic payroll deduction.

e) The Agency Head/Designated Signatory has secured an Authorization from the City/Municipal Council/Provincial Board/School Board/Eoard of Trustees (for LGU, SUCS, GFIs and GOCCs only) to be the signatory of the MOA with the GSIS on MPB.

2. The MPB shall be availed for the purpose of settling the member's outstanding obligations with LI/s and GSIS (if any), with GSIS loans being the priority in the restructuring of loans. In case the maximum loanable amount is insufficient to cover the outstanding loans from GSIS and/or the PLI/S, the member-borrower shall not be eligible to the MPB Program.

3. Member-borrowers with existing GFAL may avail of the MPB Program, provided that it is not in default and the member-borrower has no existing MPL (under the original MPL program, MPL Plus or MPL Flex). Member- borrowers may choose which LI loans to apply under the MPB.

4. The loan proceeds to be paid to LI/s shall be net of deductions to be imposed by the GSIS, i.e., advance interest payment, service fees, and loan redemption insurance.

5. The LI/s should be in the list of accredited and/or recognized LI/s, irrespective of whether or not they are covered under the automatic payroll deductions submitted by the agency to the GSIS.

6. The net take-home pay (NTHP) of the member-borrower must adhere to the provision on the Minimum NTHP set forth in the General Appropriations Act (GAA) that is being implemented at the time that the loan is granted.

B. QUALIFIED BORROWERS

Active members whose agency has executed a MOA on MPB, shall be qualified to avail of the MPB provided that such member-borrower-

1. has no existing MPL account (under the original MPL program, MPL Plus or MPL Flex);

2. has an outstanding loan/s from LI/s which is being repaid through salary deduction or reflected in the payslip of the member-borrower;

3. has no GFAL account in default;

4. is not on leave of absence without pay at the time of application;

5. has paid at least one (1) month of premium contribution (Personal Share [PS] and Government Share [GS]) within the last six (6) months prior to the application, or at least one (1) month of premium contribution (PS and GS) during the service period if their period of employment is less than six (6) months at the time of the application:

6. has no pending administrative case and/or criminal case; Provided, however, that if the pending administrative case or charge is for a light offense1, the member-borrower shall remain eligible;