SSS, Pag-IBIG, and GSIS Loans: Everything You Need to Know

At one point in your life, you will inevitably find the need to apply for a loan. Whether it’s for emergencies, personal expenses, or getting a car, chances are there’s no escaping it. A lot of people are terrified of the word “loan” alone, but in reality, it’s not so bad. As long as you pay on time and you’re responsible with your money, you’ll be able to reap the benefits of what loans were created for.

Enter the Philippine government loans: SSS, GSIS, and Pag-IBIG.

It’s no secret that a considerable portion of the population still doesn’t own bank accounts, and therefore need other ways to borrow money when an urgent need arises. Government loan agencies are an excellent option for people in that kind of situation. But even if you have a bank account and you want to educate yourself with the different ways you can apply for loans here in the Philippines, this post is also for you.

 

1. Social Security System (SSS)

The SSS salary loan is offered to the employed and self-employed or those who have voluntarily registered in the system. For a one-month loan, you must have had at least 36 posted monthly contributions. Six (6) of these should have been made within the last 12 months before the application.

Requirements for Application:

  • A minimum of 36 monthly contributions for a one-month loan; a minimum of 72 monthly dues for a two-month loan
  • The borrower’s employer should be up to date with the posting of contributions
  • Must not have been granted final benefit, like retirement or permanent disability
  • Must be under 65 years old at the time of application
  • Must not have been accused of fraudulent activity committed against SSS

How to Apply:

  • Fill up the Member Loan Application Form
  • Submit the form and present two valid government IDs in the SSS nearest you

You can also apply for a loan on the My.SSS online service portal.

The final loan amount will depend on the number and amount of contributions made since the opening of the account, but in general, SSS will only allow you to borrow a month or two months’ worth of your salary, payable within 24 months.

 

2. Government Service Insurance System (GSIS)

The GSIS operates similarly to SSS but instead services those who are working for government institutions and public sectors. It offers many different types of loans, but its direct counterpart to the SSS salary loan is their enhanced consolidated salary loan (ConsoLoan).

Requirements for Application:

  • The borrower should be an active member of GSIS, whether permanent or nonpermanent
  • They must not have any pending administrative or criminal case six (6) months before the application
  • The borrower must not be without pay during a leave of absence (LOA)
  • Their gross salary must also meet the minimum amount mandated under the General Appropriations Act (P15,000)

How to Apply:

  • Members can use their GSIS UMID at the GSIS Wireless Automated Processing System (GWAPS) kiosks
  • Over-the-counter applications are allowed at any GSIS branch if you do not have a GSIS UMID card
  • After applying, the borrower will receive an SMS notification about their loan application
  • The loan gets processed and will get credited automatically to their GSIS UMID or e-Card
  • The borrower should receive another SMS notification to learn about approval

The loan amount from GSIS will depend on your premium payments. If you’ve made 20 months’ worth of payments, you may get three months the value your basic monthly salary. If you’ve done something more long-term, say premium payments for 25 years, you can get up to 14 months of your basic salary.

 

3. Pagtutulungan sa Kinabusakan: Ikaw, Banko, Industriya, at Gobyerno (Pag-IBIG)

Pag-IBIG loans are more commonly thought of as housing loans, and while it’s an excellent option for that, they also have a multi-purpose loan for other types of expenses. Think house repairs, schooling expenses, and the like. Below are the requirements and steps for application.

Requirements for Application:

  • The borrower must have at least 24 posted monthly contributions
  • Has made five (5) monthly contributions in the past six months before the date of application
  • Should be amenable to make monthly repayments of up to 24 months within a 2-month grace period
  • Must be able to pay every 15th of the month
  • Does not have any loan default, including an existing Housing Loan with Pag-IBIG, if applicable

How to Apply:

  • Fill up the Pag-IBIG Multi-Purpose Loan Application Form
  • Photocopy your passbook or ATM with bank account name and number showing
  • Request your employer’s SSS/GSIS number and branch codes
  • Request your latest payslip with one month’s worth of salary
  • Bring all of the above to the nearest Pag-IBIG branch

Your estimated Pag-IBIG salary loan is computed using the contributions you’ve made in the last two years. The government agency applies a 60% loan factor, meaning your loan amount gets higher if you have bigger premium contributions. Employees who have made contributions for at least ten years can get an 80% loan factor.

 


 

Get the Right Loan for You

It’s great to know these options in case of a financial emergency, as they don’t require as many documents as banks and have a moderately paced approval rate.

Need even more choices? Cashalo is a great option you can consider! With low-interest rates, even fewer requirements, and much faster processing, your financial woes will be addressed in no time. You can also borrow money conveniently through a loan app. Try it now!

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