GSIS-7 disburses over P2B in loans in 2008
Cebu City (February 16) -- Over P2B in loans have been availed by members of the Government Service Insurance System (GSIS) in Central Visayas last year based on the records of GSIS-7.
Of the slightly over 81,000 members and nearly 30,000 pensioners in the region, a total of 39,176 availed of the different loan packages of the GSIS in 2008.
Cebu had the biggest loan disbursements with about P1B followed by Negros Oriental with P707M and Bohol with P267M.
GSIS President and General Manager Winston Garcia said the loans equipped the GSIS members and pensioners with the financial resources to help fuel economic growth, either directly or indirectly as payment for goods or services, business capital or other forms of investments.
"When our members apply for loans, they usually use the money either for big purchases, to pay for another loan or to start a business. Whichever the case may be, the money eventually finds itself back to the market and this is our way to help pump-prime the economy," Garcia said.
Garcia cited the Conso-Loan Program which can be used as start-up capital because this allows members to borrow money equivalent to as much as ten times their monthly salary.
Of the P2.4B loan amount disbursed in the region last year, some P2.1B was released for Conso-Loan applications of 23,648 members; which means that on average, every recipient of the program, received more than P88,000, this is said.
In Cebu alone, GSIS-7 disbursed P1.2B for the same Conso-Loan applications. The Dumaguete branch in Negros Oriental disbursed P665M and Bohol released O247M for the same program.
The main reason why GSIS was able to release big amounts in loans last year is the ease that comes with getting loans from the state pension fund. Unlike other government or private lending institutions, GSIS stopped requiring the submission of application forms and voluminous documentary requirements, according to Garcia.
Garcia said members or pensioners applying for loans only need to bring their eCard Plus to the G-W@PS kiosks located in GSIS offices as well as provincial capitols and other major government agencies in the region.
Nationwide, GSIS was able to disburse a total of P38.8B in loan proceeds to its members and another P28.6B in pension benefits to old-age pensioners.
Garcia said despite the huge amount of loan proceeds and benefits released last year and amid the global financial crisis, GSIS was able to maintain the viability of the government employees' fund.
In 2008, GSIS posted total assets worth P490B, a 12 percent increase from the total assets recorded in 2007. In the same year, GSIS' net revenue was P48B, a hike of 17 percent from the previous year, Garcia ended. (PIA-Cebu/FCR) [top]