MANILA, Philippines — State-run Government Service Insurance System (GSIS) has issued close to P6 billion in loans to members in need of financial assistance to pay for their housing needs.
GSIS yesterday reported that its new housing loan program called Pabahay sa Bagong Bayaning Manggagawa has reached more than 5,000 members to date.
In total, the insurer has issued P5.64 billion in loans to borrowers through the lease with option buy (LWOB) and the housing accounts restructuring and condonation program (HARCP).
The LWOB is a credit facility that government workers can avail themselves to own a house within reasonable means. A total of 3,360 members accessed the LWOB, with the properties valued at P2.84 billion, in 2024.
GSIS also extended relief to 1,618 members through the HARCP, condoning P2.6 billion in penalties and providing P175 million in discounts. The program bridges the financing gap that homebuyers usually face when trying to own a property.
In particular, GSIS offers the HARCP to members who are close to settling their housing terms, but face cash shortage and are at risk of cancellation or foreclosure.
GSIS president and general manager Jose Arnulfo Veloso said the fund is expanding its housing loans to ensure that members are given their right to home ownership.
“Home ownership is more than just shelter, it is a basic human right, and even more fundamental than suffrage or the right to vote,” Veloso said.
Veloso said the government-owned insurer would generate as much revenue as it can to be able to provide housing credit to state workers.
As of 2024, GSIS has raked in P428 million from leasing and gains from home sales.
The fund has also earned P272 in revenues from real estate loans and P162 million from security deposits of completed transactions.
GSIS has enough resources to finance the growing volume of borrowings among members, with assets ballooning by eight percent to P1.8 trillion as of the third quarter of 2024.
During the same period, GSIS grew its net income by 58 percent to P120 billion, while revenue jumped by 27 percent to P204 billion.
“Through housing programs, we ensure members have access to this life-changing opportunity, while helping safeguard their future,” Veloso said.