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Useful facts on Government Loans in SSS, GSIS and Pag-IBIG

Filled under: Borrow 

(Updated March 22, 2017)

There is a high chance that you have heard of the government loans, but do you know how to apply for these?

Most Filipinos don’t know how these loans work and the importance of paying off till the last cent. Yes, you may have heard some people acquiring such loans, but it is no secret that not everyone can avail them.

Government Loans

Government loans are loans provided by our government with lower interest rates and less required documents. Borrowers are required to be active members of the government agency they wish to borrow from.

If you are employed, then your employer will also play an active part. Employers are the ones who usually file for your membership in the agency. Your monthly contributions are deducted from your salary by your employer. This amount is then forwarded to corresponding government agencies.

Regular monthly contributions will be the basis of your loan amount. This is why even if you went unemployed or shifted your career into self-employed, it is still best to continue the monthly contributions.

Pag-IBIG Fund

Home Development Mutual Fund (HDMF) is more popularly known as Pag-IBIG Fund. It is created to give the Filipino workers more affordable housing programs. Pag-IBIG stands for Pagtutulungan sa Kinabukasan: Ikaw,

Bangko, Industriya at Gobyerno. The membership is mandatory and it offers two types of loans: Pag-IBIG Multi-Purpose Loan and Pag-IBIG  Housing Loan.

Pag-IBIG Multi-Purpose Loan is to bridge a member’s financial gap. It can also be used for a minor house repair, school expenses, livelihood and others. This is offered to members who have made at least 24 monthly contributions. At least the last five contributions was made six months before the loan application.

Pag-IBIG  Housing Loan can be used for purchasing a house and lot or other residential properties, home construction, or  a major house renovation. The minimum contribution required is 24 months. Pag-IBIG also requires the borrower to have a minimum income of ₱17,500 for those living in NCR, and ₱14,000 for members in other regions.


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Social Security System

The Social Security System may be run by the state but it is created to give insurance for the Filipinos who work in private, informal and professional sectors. Self- employed can also be a member and may pay contributions. SSS has various benefits and loans for its active members.

SSS Salary Loan is offered to members who had at least 36 months of monthly contributions. The amount of loan will depend on the number of contributions made. SSS also has housing loans, but these are very selective with specific purpose.


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Government Service Insurance System

Government Service Insurance System (GSIS) is a government owned financial institution whose members are public employees. This corporation has been created to provide an insurance system for government workers. The members can also get a loan with its amount depending on the number of contributions made.

GSIS do not have a salary loan, but it offers a consolidated salary loan. This means that if the member has a couple of personal or salary loans, GSIS will pay for it. In return you will pay the institution with an interest rate. Other loans are more specific when it comes to eligibility.


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When applying for a government loan, it is best to check first the eligibility. This way you will know if you can apply for a loan. It also saves time and effort. Check the needed requirements and how to apply for smooth process. Though these loans may offer lower interest rates than banks, make sure that you borrow only when you really need it to avoid financial dilemma.



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