GSIS expands loan refund program

State-run Government Service Insurance System (GSIS) has expanded its Balik Ginhawa (Loan Moratorium Through Refund) Program, allowing qualified members and pensioners to recover up to six months’ worth of eligible loan amortizations as part of the government’s continuing effort to ease their financial burden.

The enhanced program, which took effect on July 1, enables qualified borrowers to apply for refunds covering loan payments made from December 2025 to May 2026.

GSIS President and General Manager Jose Arnulfo “Wick” Veloso said the expanded initiative supports President Ferdinand R. Marcos Jr.’s directive to make government services more responsive and meaningful.

“Patuloy na pinalalawak ng GSIS ang mga programang nagbibigay ng tunay na ginhawa sa ating mga miyembro at pensioners,” Veloso said.

He explained that the enhanced Balik Ginhawa 2 program gives qualified members and pensioners additional financial flexibility by allowing them to recover up to six months of loan amortizations, which they can use for their immediate needs.

The program covers active GSIS loan accounts, including housing loans, except those under the GSIS Ginhawa Green Loans Program, specifically the Ginhawa Solar Energy Loan (GSEL) and the Ginhawa Bike and E-Mobility Loan (GBEL).

Qualified applicants may file their requests through the GSIS Touch mobile application from July 1 to Oct. 31, 2026. Approved refunds will be credited directly to the member’s or pensioner’s designated GSIS bank account.

Veloso clarified that any amount previously refunded under the first phase of the Balik Ginhawa Program will be deducted from the total refundable amount. However, members who received less than the maximum three-month refund under the initial rollout may still claim the remaining eligible amount for those months, in addition to the three extra months provided under the expanded program, subject to a maximum refund equivalent to six monthly loan amortizations.

The GSIS chief also assured members that the covered months will not be treated as loan defaults despite the refunded amortizations.

“This means that qualified members who avail themselves of the program will not be penalized simply because the refunded months will reflect as unpaid. These periods are covered by the moratorium and are not treated as loan arrears,” Veloso said.

Excluded from the program are loan accounts already classified as due and demandable, or those with unpaid amortizations exceeding six months, fully paid or renewed loans, members with pending or processed retirement or separation benefit claims at the time of application, and those without a designated GSIS bank account.

Advance payments made before a loan’s first due date are likewise ineligible because they are treated as payments to the loan principal rather than monthly amortizations.

GSIS encouraged members and pensioners to check their loan status and refund eligibility through the GSIS Touch app, where updates and program details are also available. For more information, members may also visit the official GSIS website and its social media platforms. TRACY CABRERA