The Social Security System (SSS) and the Government Service Insurance System (GSIS) have launched microloan programs charging 6% interest annually, giving members a lower-cost borrowing option than informal lenders who charge upward of 10% a month, Finance Secretary Frederick Go said Saturday.
Go disclosed the programs during an interview on DZRH News program “Special on Saturday” on August 8, part of the DZRH SONA 2026 Series featuring the Department of Finance. He said he directed both agencies to design the programs after taking office, specifically to give members an alternative to informal lenders known in the Philippines as 5-6 operators.
“Bakit sila naghihiram sa mga tinatawag nating 5-6 at nagbabayad sila ng interest na humihigit sa 10% a month? So nung pumasok ako sa Department of Finance, I challenged SSS at GSIS, ‘Gumawa nga kayo ng programa para makatulong tayo sa ating mga miyembro,'” Go said.
Under the SSS Micro Loan Program, members can borrow up to ₱20,000. The GSIS version, called Ginhawa Go, offers loans of up to ₱50,000 to government employees. Both carry an annual interest rate of 6%, equivalent to 0.5% a month.
“6% a year! Utang na, kung sa loan shark ka 10% a month, dito po 0.5% a month or 6% sa isang taon,” Go said, drawing the comparison between the two borrowing options.
Go said the programs are aimed at members who typically borrow small amounts to cover emergencies such as medical bills, school fees, or short-term household expenses. Many of these borrowers previously relied on informal lenders because banks required collateral they did not have.
For SSS and GSIS members without access to formal bank credit, the new programs offer a government-backed channel for emergency borrowing at a fraction of the cost charged by informal lenders, whose rates can compound quickly over a matter of months.
The Department of Finance has not indicated whether similar microloan schemes are planned for members outside the SSS and GSIS system, such as workers in the informal sector who are not covered by either agency.
