When contingencies and emergencies arise, it is always good to have extra cash to tide you over. Of course, there are times when what you have is not enough and you need to procure additional funds to fulfill some important financial obligations. This is the time when SSS loans come in handy.
SSS, as a pension fund institution, is known not only for its benefit programs but also for its various short-term member loans that people can avail themselves of during financial emergencies or after an unexpected calamity. SSS offers loan privileges such as Salary Loan, which is equivalent to a one month or two month-salary loan based on member’s latest posted 12 monthly salary credit, and Calamity Loan, a loan assistance for SSS members who were affected by typhoons and other calamity events and who are living in declared calamity-stricken areas by the National Disaster Risk Reduction and Management Council (NDRRMC).
These past couple of years have been very challenging and now that pandemic restrictions have eased, businesses have started to open and people are trying to get back on their feet, we are certain that more people would like to get back their good standing with SSS by settling their unpaid short-term loans.
For those who missed out on paying their Salary Loan, Calamity Loan, Salary Loan Early Renewal Program (SLERP), Emergency Loan, and Restructured Loans under the Loan Restructuring Program (LRP) implemented in 2016-2019 due to unexpected circumstances, we have good news for you! As part of our Pandemic Relief and Restructuring Program (PRRP), we are currently offering the Short-Term Loan Restructuring and Penalty Condonation Program starting November 15, 2021 until February 14, 2022, where our members can pay the said loans without the penalty.
Eligible under this program are:
1. All member-borrowers with past due loans for at least six months as of the first day of condonation period.
2. Member-borrowers who:
- Are under 65 years old at the end of the installment term (for installment payment);
- Have not been granted any final benefit, i.e. permanent total disability or retirement; and
- Have not been disqualified due to fraud committed against the SSS.
3. Member-borrowers who will file their final benefits application for permanent total disability or retirement, whose contingency date is on or before the last day of the availment period of the condonation program of which the application must be filed within the availment period.
4. Heirs or beneficiaries of deceased members who will file the death benefit application, whose contingency date is on or before the last day of the availment period of the condonation program.
Under this program, the total amount of the outstanding principal and interest of the member’s past due loans shall be consolidated and settled through the following payment terms:
- One-time Payment—full payment of the Consolidated Loan, in a single payment transaction, within 30 calendar days from receipt of the notice of approval of the Penalty Condonation Application. No staggered/partial payments are allowed even if the required payment is completed within the 30-day prescribed period.
- Installment—full payment of 50 percent of the Consolidated Loan, in a single payment transaction, within 30 calendar days from receipt of the notice of approval of the Penalty Condonation Application. No staggered/partial payments shall be allowed even if the required payment is completed within the 30-day prescribed period. The remaining 50 percent shall become Restructured Loan (RL 1) and shall be paid in six equal monthly installments starting from the month following the end of the 30-calendar day period. Late payments shall be subject to imposition of penalty.
However, it is important to note that under the installment payment term, member-borrower must be under 65 years old at the end of the installment term, otherwise, member-borrower shall only qualify under the One-Time Payment term. Member-borrowers and heirs or beneficiaries of deceased member-borrowers who will file their benefit application and whose contingency date is on or before the last day of availment period of the condonation program shall only be allowed to avail themselves of the one-time payment through deduction from the proceeds of the final benefit claim. A Payment Reference Number shall be issued with the amount and due date for each required payment.
Receipt of Notice’ shall be deemed the date when electronic notice was sent to the applicant’s e-mail address.
Significantly, all member-borrowers must apply for the Penalty Condonation Program through the SSS web site by accessing his/her My. SSS account except for Death, Disability, Retirement benefit applicants who are self-employed, with dependents, mine workers, racehorse jockeys, and incapacitated retiree subject for representative payee who can only file their claims through over-the-counter (OTC).
Now that the program is currently in place, I am enjoining our member-borrowers to avail themselves of this offer as part of our assistance to them during the pandemic. By having your loan penalties waived, it is now easier for you to pay your delinquent loans in flexible payment arrangements. Unlike in our previous condonation program where there was a six-month holding period from full payment of the loan, under this program, members can readily gain back their good standing and file for a loan renewal after full payment of the loan.
Have a productive week ahead!
For more information on this program, you may browse our official web site www.sss.gov.ph and official social-media accounts: Philippine Social Security System on FB, @PHLSSS on Twitter, Philippine Social Security System on Youtube or join our Viber Community at MYSSSPH.
Aurora C. Ignacio is SSS president and chief executive officer.
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