Cash Mart

Call Us To Discuss Your Loan Today (028) 829 0000


Join over 30,000 happy customers who have experienced personal loans the Cash Mart way. Your online lending partner ANYTIME and ANYWHERE

Government Loans Guide in 2019: SSS, GSIS & Pag-IBIG

Government Loans Updated on February 2024 

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

The Philippines has several government loan programs. All of these aim to provide financial assistance to various population sectors. You can get funding for your house procurement, business starter pack, or salary. 

Despite the numerous financial aid Pinoys can get from the government, many still need to be made aware and hesitant to apply for one. Some find government loans intimidating, while others think of it as high-risk. 

Loans offered by government agencies are beneficial to every Filipino citizen. However, you must understand how these loans operate. Moreover, it is ideal that you see the significance of repaying them down to the last cents.

Although some Filipinos may be familiar with obtaining such loans, not everyone can access them. Only a few knew when and where to apply for a loan. No one can avail of the government’s loan products and services without sufficient information. Fortunately, this article tackles the top government loans offered in the country. 

Government Loans

The Philippines’ government loans are financial tools the government provides to every Filipino. It aims to promote economic development, support specific sectors, and enhance social welfare. 

Our government provides loans with lower interest rates and fewer required documents. Borrowers must be active members of the government agency they wish to borrow from.

If employed, 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. It is still best to continue the monthly contributions even if you become unemployed or shift your career to self-employed.

These government loans are more accessible and affordable than private financial institutions. Grab the opportunity and privileges that come with these loans, especially if you know more about them. 

Why Apply for Government Loans?

Various money lending facilities, both public and private, are available in the Philippines. However, not all are familiar with the benefits one can get from government financing agencies. We listed vital aspects you can consider when applying for any loan. 

Lower Interest Rates and Minimal Documentation

One of the primary advantages of government loans is the provision of lower interest rates. It makes the loans more cost-effective for borrowers. The rates must abide by what was stated in the law. 

Additionally, the documentation required for these loans is often less stringent. Most private loan agencies require you to pass a long list of paperwork. But with government loans, it follow a simplified application process.

Active Membership Requirement

One of the primary requirements of government loans is membership. It ensures that these financial assistance programs benefit those actively contributing to the system.

Before applying for a loan, you must be an active member of the specific government agency offering the loan to qualify for government loans. For example, you pay your monthly contributions diligently as an SSS member. As an active member, you can apply for the SSS Salary Loan


Vital Role of Employers

Employers are crucial in facilitating access to government loans for employed Filipinos. Often, they typically handle all membership filings with the relevant government agency. It includes Pag-IBIG, PhilHealth, SSS (for private companies), and GSIS (for government companies). 

Your employer’s vital role is not just registering your membership to these government entities. Also, they are responsible for deducting the required monthly contributions from your salaries. It means the deductions in your payslips go directly to the relevant government offices. You don’t have to process it by yourself. 

Monthly Contributions as Basis for Loans

The loan amount a Filipino can borrow is often determined by their regular monthly contributions to the government agency. In addition, the more consistent the contributions, the higher the potential loan amount.

The monthly contributions deducted by your employer are crucial to your future government loan application. It serves as a basis for calculating your loanable amount. 

Employment Status and Loan Eligibility

Taking out government loans is not solely for employed Filipinos. Being employed is a big plus for loan applications. But don’t be discouraged if you ever face unemployment or a shift to self-employment. Instead, it is encouraged to maintain regular monthly contributions. 

If there is continuity in your monthly contributions, you remain eligible for government loans. As a result, it helps you maintain financial stability during career transition.

Loan Repayment and Employer Involvement

The loan repayment process for government loans is typically facilitated through payroll deductions. It streamlines the repayment process and ensures timely payments. Therefore, you don’t have to worry about missed payments. 

Employers deduct the loan repayments directly from employees’ salaries. On top of the monthly contributions, you’ll see that your payslip has loan deductions. It is beneficial as you don’t have to set a reminder for your following due obligations. However, it is wise that you set your budget wisely with additional expenses in your paycheck.  

With this list, you better understand why you should consider applying for government loans. You will reap the salary deductions for contributions when you need them. 

Where to Apply for Government Loans?

There are various government sectors in which you can reach out to in times of financial despair. These are Pag-IBIG, SSS, and GSIS. We listed and discussed each agency and its loan offerings to better understand your options.

Pag-IBIG Fund

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

The membership is mandatory and offers three types of loans: Pag-IBIG Multi-Purpose Loan, Pag-IBIG Housing Loan, and Pag-IBIG Calamity Loan. 

Pag-IBIG Multi-Purpose Loan

The Pag-IBIG Multi-Purpose Loan is to bridge a member’s financial gap. MPL is a loan for qualified Pag-IBIG Fund members who need quick cash. 

You can use MPL for minor house repairs, bill payments, school expenses, livelihood, etc. It is for Pag-IBIG members who have made at least 24 monthly contributions. At least the last five contributions were made six months before the loan application. 

Moreover, Pag-IBIG MPL lets you borrow up to 80% of your total Pag-IBIG Savings. Plus, you can pay it off in 24 months.

Pag-IBIG Housing Loan

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. 

Also, the PagIBIG loan 2019 requires the borrower to have a minimum income of ₱17,500 for those living in NCR and ₱14,000 for members in other regions. 

As of today, Pag-IBIG Housing Loan offers two programs. It is the Affordable Housing Loan (AHP) and the End-User Home Financing Program (EUF). 

Affordable Housing Loan is ideal for Minimum Wage Earners. You can apply for a loan amount up to PHP 750,000 with an interest rate of 3% annually. On the other hand, the End-User Home Financing Program allows you to borrow up to P6 million with an annual interest rate of 5.5% per annum.

Pag-IBIG Calamity Loan

Pag-IBIG Fund Calamity Loan assists any Pag-IBIG Fund members living in areas declared under a calamity. However, the Office of the President or the Sangguniang Bayan must declare the affected disaster areas.

The pag-IBIG Calamity Loan loan provides immediate financial aid to help active Pag-IBIG members recover from the calamity effects. It comes at a low-interest rate of 5.95% per annum. In addition, it is payable within 24 or 36 months. The best part is its deferred first payment, which is practical while recovering from the loss of properties due to unforeseen and uncontrollable events. Also, you should file for a calamity loan within 90 days of declaring a state of calamity. 

Pag-IBIG Fund is one of the government loans you shouldn’t miss. If you continuously pay your monthly dues, you will surely enjoy perks like loan products and services in the future. 

Pag-IBIG for government loans

Credit: Pag-IBIG

Social Security System (SSS)

In the Philippines, SSS stands for the Social Security System. It is a government agency that provides social security protection to Filipino workers. It is a mandatory social insurance program designed to provide employees with various benefits, including retirement, sickness, disability, maternity, and death benefits, as well as loans.

The state may run the Social Security System, but it is created to ensure Filipinos work in private, informal, and professional sectors. Fortunately, it does not limit its services to only those employed. In addition, self-employed can be a member and may pay their monthly contributions. SSS has various benefits and loans for its active members.

SSS Salary Loan

Both employees and employers must make monthly contributions to the SSS. These contributions come from the employee’s salary that must match with the employer. The total amount of contribution depends on the employee’s salary bracket.

SSS salary loan is offered to members with at least 36 months of monthly contributions. The amount of the loan will depend on the number of payments made. Also, SSS has housing loans, which are very selective and have a specific purpose.

SSS Salary Loan Tenure

If employed, self-employed, or voluntary member, you can consider the following before applying. 

A one-month loan needs 36 monthly contributions. Six of these must be posted in the last twelve months before the month of loan application.

A two-month loan needs 72 monthly contributions. Six of these must be posted in the last twelve months before the month of salary loan application.

Additionally, the member’s employer must update the contributions payment and loans. Also, the member must be updated on other SSS loan payments.

If you are a consistent and diligent SSS member, you can access funds for your immediate financial requirements through the SSS salary loan. It is like a monetary advance available to all SSS members. However, the borrowing limit is contingent upon the total number of contributions you’ve made.

Although the borrowed amount is from your contributions, it remains a loan. That’s why you must make a timely repayment.

If you borrow from your contributions, you can enjoy two notable benefits. First, relatively quick loan approvals. Second, notably lower interest rates compared to those offered by non-government entities. It is 10% per annum as of 2024.

Nevertheless, failing to fulfill your loan obligations or neglecting repayment promptly will hinder your access to other SSS benefits. One of the best examples of this is the SSS unemployment insurance for members facing job loss.

The SSS salary loan program is one of the government loans that gives back to members who contribute regularly. You can apply for it if you are an active and diligent member.

social security system for government loans

Credit: SSS

Government Service Insurance System (GSIS)

Government Service Insurance System (GSIS) is a government-owned financial institution whose members are public employees. This corporation was created to provide an insurance system for government workers. It includes those Filipinos working in national and local government units, government agencies, government-owned and controlled corporations, state universities, and colleges.

GSIS is the counterpart of the Social Security System, which primarily serves employees in the private sector. Also, the members can get a loan with its amount depending on the number of contributions made.

Enhanced Consolidated Loan (Conso-loan)

GSIS does not have a salary loan but offers a consolidated salary loan. If the member has a couple of personal or salary loans, GSIS will pay for them. In return, you will pay the institution an interest rate. Other loans are more specific when it comes to eligibility. Check its official Pag-IBIG loan website to learn more about getting a GSIS housing loan. 

The Consolidated Loan is a comprehensive financial solution combining five distinct loan products into a single offering. These encompass the following: 

  • Salary Loan
  • Restructured Salary Loan
  • Enhanced Salary Loan
  • Emergency Loan Assistance
  • Summer One-Month Salary Loan. 

If you are a GSIS member opting for the Conso-loan for the first time, you have a one-time automatic condonation. It effectively eliminates outstanding penalties or surcharges incurred from these specific loans. The feature enhances the appeal of the Conso-loan, providing a streamlined and forgiving mechanism for eligible members seeking financial aid. 

Enhanced Conso-Loan Plus Program allows GSIS members with a minimum of 15 years of service and paid premiums are eligible to apply for a 12-month salary loan. For those with at least 25 years of service, an extended 14-month loan is available. 

Notably, the credit limit for these members has been increased from the previous 10 times their salary. Additionally, GSIS has extended the maximum payment term from six to 10 years for members who have accumulated at least 10 years of paid premiums. These changes in the program provide more favorable terms and increased financial flexibility for eligible GSIS members.

Policy Loan

The Policy Loan is one of the government loans that allows GSIS members to access funds from their GSIS life insurance policies. It comes with an 8% interest rate. Members can repay it through monthly amortization or deduction from their existing life insurance policy contract. 

The loan program provides you with a convenient means of obtaining financial assistance. At the same time, it leverages the value of your life insurance policies.

Emergency Loan

The Emergency Loan is a financial aid GSIS provides to its active members adversely affected by natural calamities. Also, the loan program offers timely assistance to GSIS members facing challenges and financial hardships in the aftermath of such disasters. In addition, the loan aims to help members cope with the immediate impact of natural calamities by providing them with accessible financial support during difficult times.

Since the GSIS Emergency Loan is for members facing the negative impacts of calamities, its repayment structure is over three years or 36 equal monthly installments. At the same time, it offers an interest rate of six percent per annum. 

In the event of renewal, any outstanding balance from the previous loan is deducted from the proceeds of the new loan. The GSIS loan program provides timely financial assistance to members struggling with the repercussions of calamities. Most importantly, it offers a structured and manageable repayment plan.

GSIS is truly one of the most reliable government loans Pinoys can run. With its various loan products, you can efficiently address any financial difficulty. 

GSIS for government loan

Credit: GSIS


When applying for government loans, checking the eligibility requirements first is best. It will help determine your pre-qualification to get a personal loan. Also, it saves time and effort.

Check and prepare the needed documents for a smoother process. Though these loans may offer lower interest rates than banks, ensure you only borrow when needed to avoid financial dilemmas.

But despite its wide range of loan offerings, a government loan has its limit. If you find it difficult to access financial aid urgently, you can apply for a low-interest personal loan offered by Cash Mart. It is a licensed moneylending company in the Philippines that caters to all sorts of financial needs. Learn more about them through their official webpage.