Manila: The Government Service Insurance System (GSIS) has officially introduced Ginhawa Go, a short-term micro-loan facility designed to offer government employees quick, secure, and affordable access to cash for urgent financial needs.
According to Philippines News Agency, GSIS President and General Manager Jose Arnulfo Veloso described the initiative as a 'loan on the go,' emphasizing its convenience, speed, and security. Veloso stated that the program aims to bridge gaps in access to short-term and transitional credit among government employees, providing financial assistance with dignity.
Finance Secretary Frederick Go highlighted the significance of accessible microcredit in safeguarding workers from falling into debt traps, noting that small loans can escalate due to predatory lending rates. He stressed that Ginhawa Go is crucial in preventing such financial burdens.
GSIS Board Chairperson Rodolfo del Rosario Jr. remarked that the program acknowledges the immediate credit needs of members, offering a financial product tailored to them. Del Rosario noted that Ginhawa Go is GSIS' response to the need for quick credit access.
The Ginhawa Go program offers loans starting from PHP1,000, with repayment terms ranging from 30 to 90 days. Higher loan amounts, up to PHP50,000, can be repaid over periods from three to 24 months. The loan features interest rates of 6 percent per annum for members with at least three years of paid premium contributions and 7 percent for those with less.
Additional fees include a 1-percent service fee and Loan Redemption Insurance, which protects the family from financial liability in the event of the borrower's death or permanent disability. The loan is accessible to active members with at least one month of paid contributions and can be applied for through the GSIS Touch mobile app, with funds disbursed within 24 to 36 hours after approval.
The GSIS noted that Ginhawa Go replaces the Ginhawa Lite program and is expected to benefit newly hired employees, low-income earners, and those with limited borrowing history, addressing needs unmet by traditional loan products.
