Does lending money can really change lives for good? Are we really confident and secure enough, that lending money is the best solution for our cash problem?
I know a lot of people who are very confident in lending money to a well known Bank or Micro Finance Organization, or Lending Company which basically offers a low interest rate. It’s true that loaning can be our best alternative solution in getting quick Cash in case of emergencies. In the Philippines, it is more than a of quarter of 105.7 million people living in dire poverty. The main reason is rapid population growth of rural productivity. And, of the Filipinos doesn’t have access or can’t access to any credit cards from the bank.
Luckily Government Institutions in the Philippines promote and educate the Filipinos that there are other Government Agencies like SSS, GSIS, and Pag-IBIG that you can get a loan. And these are the biggest government agencies that provide financial aid for housing, loans, and social security services.
Other financial institutions also offer personal and salary loans. However, government personal loans are much better since they provide higher salary loans compared to other lending institutions and very low interest rates compared to any banks in the Philippines. Members who are active payers of their contributions can also repay easily because the loan payments are auto-deducted from their salary.
For Government employed citizen the Government Service Insurance System (GSIS) provides social security to government employed. But to avail loans from GSIS you must be an active member, have no criminal or administrative case six (6) months prior to the loan application, have sufficient take-home pay of at least ₱15,000 to pay the monthly amortization, no record of any suspension from the agency and any other public body.
Personal loan from GSIS members can use the GSIS Wireless Automated Processing System (GWAPS) kiosks available in 57 GSIS branches to get their personal loans processed. Once approved and confirmed by authorized officers of the agency, borrowers will receive an SMS to notify them with their loan application. The loan proceeds are then credited automatically to the GSIS Card or the UMID or unified multipurpose identification card, whichever one is available. Successful borrowers are notified through a text.
GSIS loan amount depend on your minimum premium payments. Members who paid a premium of 20 months are eligible to loan three months worth of their basic monthly salary. Premium payments for 25 years are granted to loan 14 months worth of their basic salary and SOCIAL SECURITY SYSTEM or SSS allows their members; whether employed, self-employed, or a voluntary member, to avail their offered government loans as long as they are currently paying their premiums. Loan requirements and qualifications of SSS are: you must be an active member, updated employer contributions, updated payments for outstanding loans, not be 65 years old or more upon the time of application, not be disqualified because of fraud against the agency, not have final benefits like retirement.
You can also access the SSS log-in to your account, select Salary Loan Application on Transactions and SSS will automatically detect if you’re eligible for a loan or not. After that, a processing of two to three weeks is needed before the loan can be approved. Members are notified via email or through their Human Resource department.
Another Government Agencies that are known for housing loan program is the PAGTUTULUNGAN SA KINABUKASAN: IKAW, BANKO, INDUSTRIYA AT GOBYERNO or Pag-IBIG Funds. Pag-IBIG provides Multi-Purpose Salary Loans to its members, if you are qualified and active Pag-IBIG member, you have monthly contributions for 24 months, you must have a valid identification (ID) bearing your photo and signature or Pag-IBIG I.D. card, latest payslip with a month’s salary.
For more details you can visit the Pag-IBIG near your area and fill the application form. Once, you accomplished application form you must wait for the loan approval. So make sure that you get all the necessary information from your employer since it’s also needed in your application. This includes the signature of any authorized representative from your company or office head, your employer, their SSS or GSIS number, agency and branch codes.
The minimum Pag-IBIG salary loan is computed using the premium contributions you have made within 24 months. Pag-IBIG applies a 60 percent loan factor so your loan amount becomes higher with higher premium contributions. Employees with contributions for 120 months or 10 years are eligible to get an 80 percent loan factor.