GSIS launches micro-loans for gov’t workers

The Government Service Insurance System (GSIS) has launched a micro-loan program aimed at providing flexible and short to medium term cash assistance to government workers.

In a news release, GSIS said it recently launched “Ginhawa Go,” describing it as a “loan on the go” program.

Under Ginhawa Go, members may avail of loan amounts starting at P1,000, P2,000, P3,000, or P4,000, payable within 30, 60, or 90 days. 

For higher loan needs, members may borrow P5,000 up to P50,000, with repayment periods of 3, 6, 12, 18, or 24 months, allowing borrowers to match loan terms with their capacity to pay.

The loan is open to members with at least one month of paid premium contributions and is available exclusively through the GSIS Touch mobile application.

GSIS said loan proceeds are credited to the member's account upon approval by the Agency Authorized Officer (AAO), ensuring timely financial support. 

The pension fund said the interest rate under the program is set at 6% per annum for regular members with at least three years of paid premium contributions, while special members are covered at 7% per annum.

The program is covered by a Loan Redemption Insurance (LRI) ensuring that any remaining balance is paid off if the borrower passes away, sparing the family from financial burden.

GSIS said the program is expected to benefit newly hired employees, low-income earners, and members with limited borrowing history whose needs are not fully addressed by traditional loan products with longer repayment periods. —VBL, GMA Integrated News