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.


  1. Great article! Now I can go about getting a loan so I can get a head start on owning all the things I need to live a satisfied life. I know it will take a while to pay back the loan, but that’s okay since I can plan ahead for the repayment.

  2. I don’t know the best adjective to qualify this article, I think “GREAT” would be an understatement. As I don’t think any piece exists or would ever exists that would surely be informative, educative and self understanding like this. Are you probably considering seeking for loan, then you must take your time, sit back, relax and read this piece from the beginning to the end without missing a single lines. I guarantee that it would have a positive impact on your life.

    1. I read it and I was like wow! I just had to read over and over again to digest it the more. I really love this piece. I think I will use fantastic as an adjective to qualify it. It’s mind blowing. Thanks to the writer I learn’t a lot.

  3. Loans sounds like a great way to get started with all the things you want. I worry about paying it back though. What happens if I make a payment late? Will the things I buy be worth as much by the time I pay off the loan? I guess I’ll have to plan well.

  4. Adequate finance must fulfill your targets and responsibilities. You will need urgent cash to fulfill unexpected medical costs, pay educational charges, make a obtain, fund an unplanned trip, meet the existing debt commitments, or any some other reason. During these kinds of times, finance becomes the necessity of the hour or so. The best supply of capital during these kinds of times is via an instantly approved bank loan.

  5. I do not know; I am not quite convinced. I think that nothing can replace the hard work, it is okay if you want to get some help with a loan but it can easily become a double sided knife because you are taking kind of a risk doing this.

  6. Loans are only good when they are geared towards successful production. If they are meant to just solve recurrent problems they become a dead weight. The government is doing a good thing by helping civil servant out with loans with low interest, i just hope it is properly utilized for the their own good.

  7. If you are from the Philippine, this is the best article you can google to get informed about loans in your country. Very focused and professionally written to make the reader understand the basics methods of getting a loan in the Philippines. Would recommend to anyone looking for a loan advice from the Philippines.

  8. Marvelous post. You’re exchangeable for your dream home, and trying to find the loan options that best suit your needs. Buying a home could be the largest and most important investment you will ever make. Knowing how to save for your ideal household is the first step towards homeownership success.

  9. Getting loans is very easy nowadays. Not like the previous times when it will look hectic and so demanding. The only problem is where you are collecting the loan and the interest rate at a point in time. If these factors are very welcoming, loans are life saver.

  10. For me, if you really wanted to make your dreams come true, strive for it. Loans may be helpful in some circumstances, but not with making your dreams to be realistic and attainable. You have forgotten about the Indian lending system which is very popular here in our country, also well-known as “5-6 (five/six)”. I don’t think this kind of loan will really lead you to your success, but will keep you heavily debt. For there I conclude, no matter how you chase for your dreams by allowing yourself to ask for loans, you will never be there. Work smarter and harder.

  11. I don’t have SSS or GSIS yet so I’m not familiar with such loans. However, this article helped since it was very understandable and informative.

  12. Though this article is very informative, it should also have included the disadvantages of being riddled with loans. Living beyond one’s means could cause repercussions that would be difficult to get out of. It would also be great to know whether loans from these agencies are insured. Unavoidable circumstances could cause delays in payment such as sickness or death.

  13. Wow I just cant imagine that this will happen when you enter in to such kind of financing in efficient to get dreams come true. but as for my opinion, i think loan for your dream is not bad at all really because they tend toi help you get what you want but with this cost of interest of course. i hope someday i could get the thing i want the most too so that i can say i am financially stable and free.

  14. Thanks for the post.As I don’t think any piece exists or would ever exists that would surely be informative, educative and self understanding like this. Are you probably considering seeking for loan, then you must take your time, sit back, relax and read this piece from the beginning to the end without missing a single lines. I guarantee that it would have a positive impact on your life.

  15. Traditional prejudices might have been the biggest barrier for women entrepreneurs. However, the scenario seems to be changing rapidly, with women entrepreneurs being just as successful as men. In fact, for women willing to start small businesses of any type be it catering, real estate, brokerage etc Women’s business loans could be availed from different resources.

  16. Really we can use the loans to get our dreams came true , because nowadays the prices for every things is getting higher and higher , and if we take a loan to buy a house as example that will be a good chance to avoiding the higher of the prices, but on condition that we should have a work or source to caver this loan and the bank interests.

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