Social Security System is providing a program for loan condonation

The Social Security System (SSS) in the Philippines is urging its members who have outstanding loans to take advantage of the agency’s loan condonation program. Rizaldy Capulong, the SSS executive vice president, emphasized the importance of members applying for loan consolidation and penalty condonation programs to settle their dues.

By participating in these programs, SSS members can restore their good standing with the pension fund and regain access to various loan facilities offered by the agency. Specifically, members can opt for the consolidation of past due short-term member loans (STML) along with the condonation of penalties.

This initiative covers various types of past due STML, such as salary loans, calamity loans, emergency loans, and restructured loans. Any past due STML includes loans with unpaid obligations exceeding three monthly amortizations or those with remaining unpaid balances after maturity.

Under the program, all outstanding principal and interest of the member-borrower’s past due loans will be merged into a single consolidated loan upon application. Additionally, unpaid penalties will be consolidated and waived upon full payment of the consolidated loan.

Capulong highlighted the opportunity for members to settle their past-due loans without incurring penalties, offering relief to those facing challenges in meeting their loan obligations to the SSS. Eligible members must have past due loan accounts, active online accounts, and not have received any final benefit or been disqualified by the SSS.

SSS allows members to settle their dues either in full or through installment plans. For installment plans, a downpayment of at least 10 percent of the consolidated loan is required within 30 days of application approval, with the remaining balance payable in equal monthly installments over a period ranging from six months to five years, depending on the remaining loan balance.

However, failure to comply with the payment terms may lead to the deduction of the outstanding balance from the member’s short-term benefits, final benefits, or death benefits as authorized by the Social Security Commission.

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