By Wilnard Bacelonia | Philippine News Agency
The Government Service Insurance System (GSIS) on Thursday formally launched “Ginhawa Go”, a short-term micro-loan facility designed to provide government employees with quick, secure and affordable access to cash for urgent needs.
GSIS President and General Manager Jose Arnulfo Veloso described the program as a “loan on the go” meant to be “convenient, quick, and secure.”
“Napakalinaw ng purpose nito, pantawid with financial dignity, a bridge for small, urgent needs,” Veloso said.
He said the program was developed to address gaps in access to short-term and transitional credit among government workers.
“Ang Ginhawa Go ay isang pantawid na pautang para sa agarang pangangailangang pinansIyal ng ating mga miyembro. Idinisenyo ito upang magbigay ng mabilis at maginhawang tulong sa panahong kinakailangan, na may makatuwiran at abot-kayang hulugan upang hindi mabigatan ang nagbabayad,” Veloso said.
Finance Secretary Frederick Go, who delivered the keynote message, underscored the importance of accessible microcredit in preventing workers from falling into debt traps.
“The truth is nobody wakes up one day and says can I borrow a million pesos. Everybody starts with a small loan. And that small loan, because of predatory lending rates, grow, and grow, and grow so that one day you wake up, you started with a ‘payday loan’ and you end up with a massive amount of loan that you cannot imagine how you will ever repay. That is how important this microloan program is,” Go said.
GSIS Board Chairperson Rodolfo del Rosario Jr., in his opening remarks, said the initiative recognizes the immediate credit needs of members.
“This program is a recognition that our members need quick and immediate access to credit to manage their finances. Ginhawa Go is GSIS’ answer to this need by promoting a financial product suited to its members,” he said.
Loan features
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 to P50,000, with repayment periods of three, six, 12, 18, or 24 months.
The micro-loan tier allows borrowing in multiples of P1,000, repayable in one to three months, while the standard tier covers loans in multiples of P5,000 with longer repayment terms.
Interest is set at 6% per annum for members with at least three years of paid premium contributions, and 7% per annum for those with less than three years of contributions and special members.
As shown in the amortization schedule, a P1,000 loan payable in 30 days at 6% carries a monthly amortization of P1,005, while the same amount payable in 60 days requires P505 per month.
Interest and applicable fees, including a 1% service fee and Loan Redemption Insurance (LRI), are deducted upfront. The LRI ensures that in case of death or total permanent disability, the unpaid balance will not be passed on to the borrower’s family.
The loan is open to active members with at least one month of paid premium contributions and may be applied for exclusively through the GSIS Touch mobile application. Loan proceeds are e-credited within 24 to 36 hours upon approval by the Authorized Approving Officer.
GSIS said the program replaces Ginhawa Lite and 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.
