The situation, in brief
The Social Security System (SSS) and the Government Service Insurance System (GSIS) have launched micro loan programs offering emergency loans at 6% annual interest, providing a government alternative to informal lenders that charge as much as 10% per month, Finance Secretary Frederick Go said…
The Social Security System (SSS) and the Government Service Insurance System (GSIS) have launched micro loan programs offering emergency loans at 6% annual interest, providing a government alternative to informal lenders that charge as much as 10% per month, Finance Secretary Frederick Go said Saturday.
Go made the disclosure in an interview on DZRH News program Special on Saturday on August 8, as part of the DZRH SONA 2026 Series featuring the Department of Finance (DOF).
He said he personally challenged both the SSS and the GSIS to create programs that would help Filipinos escape the debt trap of informal lenders, known locally 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.
The SSS now offers emergency loans of up to ₱20,000 under its Micro Loan Program, while the GSIS offers up to ₱50,000 under a program called Ginhawa Go, both at an annual interest rate of 6% — equivalent to just 0.5% per 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, illustrating the stark difference between the two borrowing options.
He said the programs target Filipinos who typically borrow small amounts for emergency needs such as medical expenses, school fees, or daily household shortfalls, and who previously had no choice but to turn to informal lenders because banks required collateral they could not provide.
Go said the micro loan programs represent a direct intervention to improve the financial wellbeing of ordinary Filipinos, many of whom are trapped in cycles of high-interest debt that prevent them from building savings or growing their small businesses.
