Loan releases by State-run Government Service Insurance System (GSIS), the pension fund for government workers, jumped to P151 billion in 2021, driven mainly by support to members who have reached borrowing limit and unable to pay loans.
In a statement, Rolando Ledesma Macasaet, GSIS president and general manager said loan releases totaled P151 billion from January to December 2021, up by four percent compared with P145 billion in the previous year.
Macasaest said GSIS loans benefited more than one million members and pensioners in 2021.
“Through our various Ginhawa for All (GFAL) loan programs, GSIS has extended financial assistance at a time when our members and pensioners were in dire need of help,” Macasaet said.
Of the total amount granted, P106 billion was under GFAL multipurpose loans (MPL). The loan aims to help active members, particularly those who have reached their borrowing limit and unable to pay their loans.
MPL consolidates the existing loans of members, except housing and policy loans, and waives surcharges on in-default accounts.
Through GFAL MPL, members may apply for up to 14 times their basic monthly salary but not to exceed P3 million. It has a low interest rate of seven percent or eight percent depending on members’ premium payments.
The pension fund also released P27 billion to 62,974 availees of GSIS Financial Assistance Loan, through which members were able to borrow up to P500,000, consolidate their loans from their agencies' accredited lending institutions, and transfer the remaining balance to GSIS.
Under the GFAL Computer Loan program, GSIS disbursed over P7 billion in gross proceeds, benefitting more than 230,205 borrowers.
The GFAL Computer Loan is a loan window that grants a P30,000-assistance to GSIS members for the purchase of a computer unit for their work-from-home arrangement or their children’s online classes.
Similarly, GSIS granted P6 billion to 269,440 regular and optional loan borrowers; P1 billion to 38,980 GFAL emergency loan borrowers; and P89 million to 2,035 members through the Ginhawa Educational Loan program.
For pensioners, P3.03 billion and P96 million have been released in GFAL Enhanced Pension Loan (38,144) and Pensioners’ Emergency Loan (4,415), respectively.