SSS waives penalties on short-term loans


FILE APPLICANT PHOTO/GRIG C. MONTEGRANDE

MANILA, Philippines – The public pension fund Social Security System (SSS) has started accepting online applications from members who want their outstanding loans to be tolerated without any penalty.

The Members’ Short-Term Loan Penalty Waiver Program which began on November 15 will accept applications until February 14, 2022, through member-borrower My.SSS accounts.

“Our heart goes [out] to our members who have been greatly affected during this pandemic and yet [are trying] their best to get back on their feet. The SSS is always here to extend not only… cash benefits and loan privileges, but also conditional forgiveness which provides financial relief by waiving their accrued penalties once their loan principal and interest are fully paid. SSS President and CEO Aurora Cruz Ignacio said in a statement.

The program will cover calamity, emergency and salary loans; borrowings under the early renewal payday loan program; and loans restructured under the loan restructuring program implemented from 2016 to 2019.

The specific qualifications of member-candidates listed in Circular No. 2021-14 are available on the SSS website.

The SSS said the members’ short-term loan penalty waiver program would consolidate the total amount of borrowers’ outstanding principal and accrued interest on delinquent loans. Settlement can be made either as a single full payment or in instalments.

“No installment/partial payment will be allowed for the consolidated loan under single payment or 50% down payment under installment term, even if the required payment is made within the 30-day period,” Ignacio said.

According to her, member-borrowers aged 65 or over who choose not to file their last claim for benefits within the availability period can only benefit from the one-time payment.

Availability period

In addition, member-borrowers and the heirs or beneficiaries of deceased members whose contingency date is no later than the last day of the notice period must file their request for benefits within the time limit to avail themselves of the penalty tolerance program. . They will only be allowed to benefit from the single payment scheme by deducting benefit proceeds, Ignacio said.

“Applicants, with the exception of final benefit claimants, must pay their consolidated loan using the payment reference number issued by the SSS with the amount and due date for each payment required,” it said. she adds.

Earlier SSS estimates showed that up to 7 million borrowers with 59 billion pesos in outstanding loans could apply for the program.

The SSS offered four tolerance programs to employers who were unable to pay dues as well as members with loan payment shortfalls due to financial hardship as a result of the COVID-19 pandemic.

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