GSIS loan disbursements reach P413.4 billion to date

THE Government Service Insurance System (GSIS) has disbursed P413.4 billion in loans so far under its flagship lending programs, it said on Wednesday.

GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso said the combined amount covers 1.9 million approved applications under its Ginhawa Flex and Ginhawa Lite programs as of June 23.

“More than disbursements, these numbers represent real relief and support for public servants,” Mr. Veloso said at an event on Wednesday. “Every reform we make, every service we improve, starts with listening to our members.”

GSIS is the state-run pension fund for government workers.

Disbursements under the multi-purpose loan program Ginhawa Flex, which allows GSIS members to borrow up to P5 million or 14 times their monthly salary, reached P401.19 billion thus far, covering 1.437 million approved applications, he said.

Loans under the program that was launched in September 2023 are payable for up to 15 years, depending on members’ paid premiums.

Meanwhile, releases under the pension fund’s Ginhawa Lite program reached P12.247 billion to 408,656 members since its launch in October last year. The program offers loans from P5,000 to P50,000 that are payable in six to 24 months.

Loans under both programs have an interest rate of 6-7%. Both are available via the GSIS Touch mobile app. Mr. Veloso said more than 1.8 million GSIS members have registered on its mobile application as of May, with over 99% of transactions now done online.

“We heard your advice that the Ginhawa Max loan buyout process could be further simplified, so we improved the process and made it more convenient. Now, all you need is a letter of intent from your head of agency to enable you to apply under the program,” he added.

The Ginhawa Max loan buyout program allows qualified members to avail up to P5 million or 19 times their salary, whichever is lower, based on their paid premiums to consolidate and settle their existing high-interest debts. It has no service fee, interest as low as 6-7%, and repayment terms of up to 10 years.

Meanwhile, GSIS said it is now protecting over 130,000 public school buildings under its National Indemnity Insurance Program.

Its Lease-With-Option-to-Buy Program has also allowed more than 4,000 families to secure homes, while nearly 2,000 borrowers were able to retain their homes with the help of its Housing Accounts Remedial and Condonation Program that provides borrowers an opportunity to bring their housing accounts back to current status.

BULLISH OUTLOOK
Meanwhile, Mr. Veloso said they remain bullish on GSIS’ financial performance for this year, even amid global uncertainties due to trade concerns and geopolitical risks.

“I am very optimistic that our financial performance will be better than last year — of course, subject to a lot of the economic and political conditions,” he said.

GSIS booked a net income of P35.55 billion in 2024, up from P6.099 billion in 2023. It had assets worth P1.83 trillion at end-2024.

Asked if the pension fund is looking at recalibrating its investment portfolio due to the ongoing volatility in global markets, he said: “If there is uncertainty, others would like to get their cash and sell some of their assets. That’s what we would like to take a look at.”

“It’s automatic. If there are uncertainties, you take a look at the safe investments… Take a look at the investments that allow you to be able to say they are the ones that are resilient during these periods. These are the likes of government securities, these are the likes of safe currencies.” — A.R.A. Inosante