GSIS offers new microloan program

MANILA, Philippines — The Government Service Insurance System (GSIS) is rolling out a new short-term microloan program for government employees, leveraging a healthy balance sheet after posting higher profits in 2025.

Called “Ginhawa Go,” the program offers a two-tiered loan structure. Members may borrow P1,000 to P4,000 payable within 30, 60 or 90 days.

Higher loan amounts ranging from P5,000 to P50,000 may be repaid over three, six, 12, 18 or 24 months.

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Applications are processed exclusively through the GSIS Touch mobile application, with approved loan proceeds credited within 24 to 36 hours.

The facility carries a fixed interest rate of 6 percent per year for members with at least three years of paid premiums.

For those with less than three years of contributions and for special members, the loan costs 7 percent.

The new program comes after GSIS posted P138 billion in net income in 2025, up 1.7 percent from P135.7 billion in 2024.

Gross revenues reached P344 billion, while total assets stood at nearly P2 trillion.

The state pension also recorded P11.4 billion in nonlife gross premium returns.

A move against predatory lending

Speaking during the launch, Finance Secretary Frederick Go said the initiative would help curb predatory lending, particularly for borrowers seeking short-term “payday” loans that are repaid on the next salary cycle.

“This program stands on two very important foundations. The first is that it makes small-value credit immediately accessible. And secondly, it shields government employees from predatory lending,” Go said.

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He noted that borrowing rates in informal markets often reach double digits.

“This program protects employees from abusive lending processes. It is really a safeguard to help our public servants and is a practical step,” he added.

GSIS president and General Manager Wick Veloso echoed this.

“Ginhawa Go gives our members an option that is fast without being reckless and accessible without being abusive. It is a practical tool that protects financial dignity,” Veloso said.

Asked whether the 6-percent borrowing rate remains fair following the quarter-point cut in benchmark rates by the Bangko Sentral ng Pilipinas, Veloso said the rate remains competitive. INQ