The Social Security System (SSS) has allocated PHP 10-B worth of loan fund for the pilot launch of its Pension Loan Program (PLP) in 20 branches all over the country, as shared by an agency executive last Sept. 3 (Monday), according to a report by the Philippine Star.
(ALSO READ: How to Apply for SSS Salary Loan as an OFW Abroad)
At the soft-launching event held last September 3, SSS president and chief executive officer Emmanuel Dooc shared that the state-regulated fund has started the initial stages of the implementation of the PLP, which seeks to provide loan assistance to some 1.3 million member-pensioners in the Philippines today.
SSS Offers Aid to Pensioners through New Loan Program
An initial budget of PHP 10 billion has been allocated by the SSS for the implementation of the PLP, but the state fund is ready to increase this to as much as PHP 30 billion as needed, shared Dooc.
For the pilot implementation phase, Dooc mentioned that 20 SSS branches in Luzon, Visayas, and Mindanao would be initially offering the program.
These branches include the ones in Caloocan, Diliman, Pasig-Pioneer (Shaw), New Panaderos (Mandaluyong), Manila, Makati-Gil Puyat, Alabang, Baguio, Bacoor, Binan, Cagayan De Oro, Cebu, Dagupan, Davao, General Santos, Ilagan, Iloilo Central, Naga, Tacloban, and Zamboanga.
Dooc also shared that all 171 branches of SSS will accept PLP applications as soon as the system has been put into place and is ready for full-scale implementation. The SSS CEO further explained that member-pensioners need not worry if the PLP is not yet offered in the SSS branches nearest their location because, they may apply in the above-mentioned first 20 branches.
Overview of the Pension Loan Program
- Retiree pensioners may avail of a minimum loan amounting to twice their basic monthly pension plus an additional PHP 1,000 benefit.
- The maximum loan amount is equivalent to 6 times the member’s basic monthly pension and an additional PHP 1,000 benefit, which should not exceed PHP 32,000.
- The PLP will incur an annual 10% interest until the loan has been fully paid.
- The first monthly amortization is due on the 2nd month after the loan has been approved.
- The 1% service fee will no longer be imposed by the SSS for this program.
However, Dooc explained that the borrower must get a credit life insurance, wherein the premium would be deducted from the proceeds of the loan.
The said condition will secure both the pensioner-borrower and his beneficiaries, as well as the SSS, in case any untoward incident happens to the former within the repayment period.
- Retiree pensioners should be 80 years old or below by the end of the loan term.
- Applicants should have no deductions (i.e. outstanding loan balance, benefit overpayment payable to SSS) from their monthly contributions, as well as any existing advance pension under the SSS calamity package.
- Applicants should also be receiving their monthly pension allowance for at least 6 months, with an active pension status.
Under the program, pensioners will be allowed to renew their pension loan once payment has been completed for their current loan. (ALSO READ: How to Check your SSS Contributions)