More than 1.1 million government employees have borrowed P942.43 billion from the Government Service Insurance System (GSIS) since 2020 through its Ginhawa loans, the state pension fund said Monday.
The loans, formerly known as the Multi-Purpose Loan (MPL) programs, offer streamlined processes and competitive rates.
GSIS launched the MPL in 2020, replacing the Consolidated Loan Program with faster processing and better terms. The five-year total is now approaching P1 trillion, reflecting strong demand for affordable credit.
Ginhawa Flex supports recurring expenses like tuition, medical bills or business capital. Ginhawa Max helps members transfer high-interest private debts to GSIS.
Interest rates for Ginhawa loans range from 6 percent to 7 percent annually with flexible repayment terms. Ginhawa Max eliminates service fees, potentially saving members thousands compared to commercial lenders.
“Nearly P1 trillion in disbursements reflect the real financial needs of government employees and their families,” said GSIS officer-in-charge Juliet Bautista.
Nemen San Jose, a municipal councilor in Teresa, Rizal, used a Ginhawa Flex loan to expand his livelihood.
“Because of MPL Flex, I was able to buy a lot which I turned into a piggery that now has 27 pigs. I also bought a vehicle for my car rental business. That’s where I now get my children’s allowances and expenses,” he said.
“MPL Flex is good because the interest is only six percent per annum. Other lenders I borrowed from charged up to 60 percent per annum. The difference is huge,” he said.
In Bukidnon, public school teacher Veverlie Padernal turned to the Ginhawa Flex loan after her husband, a farmer, was hit by a truck and could no longer work.
“He was hit by a truck. He can no longer plant; he often has headaches,” she said.
The loan helped her build their home and start a motorcycle parts business, providing her family with a stable income.
GSIS said the Ginhawa loan programs demonstrate its commitment to providing government employees with affordable credit and member-friendly terms, strengthening their financial stability.
