MANILA – The Government Service Insurance System (GSIS) has released over PHP942 billion in loans to more than 1.1 million government workers under its Multi-Purpose Loan (MPL) programs since 2020.
Now rebranded as “Ginhawa Loans,” the MPL programs aim to provide financial relief for everyday needs such as medical bills, education, emergencies, and livelihood ventures, according to a news release Monday.
GSIS officer-in-charge Juliet Bautista said the loan disbursements highlight the agency’s commitment to support its members’ well-being.
“Nearly PHP1 trillion in disbursements reflect the real financial needs of government employees and their families,” she said.
Launched in 2020 to replace the Consolidated Loan Program, the Ginhawa Loans offer improved terms and faster processing across three variants:
--Ginhawa Lite – for immediate cash needs;
--Ginhawa Flex – for recurring expenses like tuition, medical bills, or capital for small businesses;
--Ginhawa Max – for consolidating and refinancing high-interest debts from private lenders.
Interest rates range from 6 to 7 percent annually, while Ginhawa Max removes service fees entirely, offering borrowers significant savings compared to commercial lending institutions.
Local government officials and educators are among those who have benefited from the program.
In Teresa, Rizal, municipal councilor Nemen San Jose used a Ginhawa Flex loan to acquire land for a piggery and purchase a vehicle for a car rental business.
“Dahil sa MPL Flex, nakabili ako ng isang lote na ginawa kong babuyan. May 27 na baboy kami ngayon. Nakabili rin ako ng sasakyan para sa car rental business (Because of MPL Flex, I was able to buy a lot which I turned into a piggery. We now have 27 pigs. I also bought a vehicle for my car rental business)," he said.
“Doon ko na kinukuha ang baon at gastusin ng mga anak ko. Maganda ang MPL Flex dahil six percent per annum lang ang interest. 'Yung mga nautangan na ibang lenders, umaabot nang 60 percent per annum. Malaki po ang diprensiya (That’s where I now get my children’s daily allowance and other school expenses. MPL Flex is great because the interest is only six percent per annum. Other lenders charge up to 60 percent per annum. That’s a huge difference)," he added.
In Bukidnon, teacher Veverlie Padernal turned to the program when her husband, a farmer, was seriously injured in an accident and could no longer work.
“Nabundol siya ng truck. Hindi na siya makapagtanim, madalas sumakit ang ulo niya (He was hit by a truck. He can no longer farm, and he often suffers from headaches)," she shared.
Through the loan, she was able to build their home and start a motorcycle parts business.
“Nakatayo kami ulit. May sariling kita kami at kapayapaan ng isip (We were able to get back on our feet. We now have our own income and peace of mind)," she added. (PNA)