The Social Security System (SSS) said on Labor Day that it has introduced enhancements to its loan programs, in recognition of the hardworking Filipinos, local or overseas.
These include reducing interest rates for salary and calamity loans; expanding the pension loan program to include surviving spouse pensioners; and implementing a micro-credit loan facility through third-party providers.
Lower interest rates for salary, calamity loans
“As announced early this year, we proposed and obtained approval of the Social Security Commission, headed by our chairperson, Finance Secretary Ralph Recto, to reduce interest rates for salary loans and calamity loans,” SSS president and chief executive officer, Robert Joseph De Claro, said in a statement.
From the current interest rate of 10 percent, salary loan interest rate shall be reduced to eight percent, while calamity loan interest rate shall be slashed to seven percent, De Claro added.
The reduced interest rate shall be for members who have no availment of penalty condonation in the past five years – in other words, for members who have good credit quality – and will increase cash proceeds from loan applications.
Target implementation of the reduced interest rates for these loan programs is on July this year.
Pension loan for surviving spouse pensioners
SSS is also looking to expand the Pension Loan Program (PLP) to surviving spouse pensioners. The PLP, implemented since 2018, is only for retiree pensioners, but it noted that there are 1.2 million surviving spouse pensioners, as of December last year.
“We acknowledge the need of other pensioners for access to a dependable loan facility, so we are expanding the PLP to surviving spouse pensioners,” De Claro said. The maximum loanable amount shall be P150,000.
The PLP for surviving spouse pensioners shall also be covered by credit life insurance, with insurance premium to be deducted from the proceeds of the pension loan (PL) so that in case of death of the PL borrower before full payment and end of the loan term, the PL balance shall be fully paid.
Target implementation of the expanded pension loan program, to include surviving spouse pensioners, is September 2025.
Micro-credit loan facility
The SSS has also begun discussions with partner financial institutions on the feasibility of implementing a micro-credit loan facility for SSS members with tenor between 15 to 90 days.
“Currently, we are bringing the idea of a micro credit loan facility among our partner financial institutions through meetings and brainstorming sessions and see if we can address such short-term cash needs of our members. When we see a framework for this micro-credit program, we will implement as soon as possible,” De Claro also said.
“We offer these enhancements to all Filipino workers, here and overseas, for Labor Day – Araw ng mga Manggagawa. We remain committed to our push for service excellence with program enhancements and innovations,” he added.
“Next, we are looking at how we can help members through livelihood loans as allowed under Republic Act 11199, or the Social Security Act of 2018, to support the whole-of-government approach of President Ferdinand Marcos Jr. in poverty alleviation efforts, like livelihood loans for SSS members working in the transport sector,” De Claro said.
SSS is also initiating efforts on other fronts to enhance service delivery and social security protection for all. Talks are ongoing with the Department of Information and Communications Technology on digitalization programs, with PhilHealth for better collaboration through data synchronization, and with specific industries for targeted stakeholder engagements, like mining industry, construction sector, business process outsourcing, and gig economy. ||
