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.
According to Philippines News Agency, the MPL programs, now rebranded as 'Ginhawa Loans,' aim to provide financial relief for everyday needs such as medical bills, education, emergencies, and livelihood ventures, as stated in a news release on Monday. GSIS officer-in-charge Juliet Bautista emphasized that the loan disbursements underscore the agency's commitment to supporting its members' well-being, noting that nearly PHP1 trillion in disbursements reflect the real financial needs of government employees and their families.
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, and Ginhawa Max for consolidating and refinancing high-interest debts from private lenders. The loans feature interest rates ranging from 6 to 7 percent annually, with Ginhawa Max eliminating 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 utilized a Ginhawa Flex loan to acquire land for a piggery and purchase a vehicle for a car rental business. He stated that the MPL Flex loan allowed him to buy a lot, which he turned into a piggery, and purchase a vehicle for a car rental business. The loan's favorable interest rate of six percent per annum provided a substantial difference compared to other lenders charging up to 60 percent per annum.
In Bukidnon, teacher Veverlie Padernal turned to the program after her husband, a farmer, was seriously injured in an accident and could no longer work. Through the loan, she was able to build their home and start a motorcycle parts business, enabling her family to regain financial stability and peace of mind.
