Do you have unpaid or past due loan/s with SSS?
Do you want to settle your loans, but you’re worried that your loans might have already ballooned into staggering amounts due to penalties and interests?
Have you heard about the SSS Loan Restructuring Program and do you want to know how you can apply or avail of this program?
If your answer is yes to any of these questions, then I have good news for you!
Everything that you need to know about the SSS Loan Restructuring Program is finally available exclusively here at Pinay Investor.
I. What is the SSS Loan Restructuring Program?
This is a program that was recently launched by the Philippine Social Security system that aims to:
- To provide reprieve for members with past due calamity loans.
- To provide reprieve for members with past due short-term member loans residing or working in calamity/disaster stricken areas as declared by the National Disaster Risk Reduction and Management Council (NDRRMC) in 2009 (Ondoy), 2010-2014 and 2015.
- To alleviate the plight of members whose repayment capacity has been affected by said disasters/calamities and whose retirement pension may be greatly affected by the mounting penalty.
*Reprieve means a cancellation or postponement of a punishment. In the case of SSS Loan Restructuring, it is the cancellation or the lifting of penalties (only) acquired from past due loans based on certain terms and conditions).
II. COVERAGE OF THE PROGRAM
1. All member-borrowers who have past due calamity loans;
2. Members with past due short term loans living or working in disaster/calamity stricken areas as declared by NDRRMC or in the case of Ondoy, by the national government.
Covered SSS short-term loan programs are as follows:
- Salary Loan
- Salary Loan Early Renewal Program (SLERP)
- Emergency Loan
- Calamity Loan .
- Educational Loan (old)
- Study Now Pay Later Plan
- Voc Tech Loans
- Y2K Loans
- Investments incentive loan
III. AVAILMENT PERIOD
The availment period for the program is up to one (1) year from April 28, 2016 until April 27, 2017.
IV. WHAT ARE THE TERMS AND CONDITION OF THE SSS LOAN RESTRUCTURING PROGRAM
1. The loan/s must be past due for a period of at least six (6) months as of the first day of restructuring period.
2. The member-borrower:
a. Must be living or working in calamity/disaster declared areas as of disaster date or as of application date. “Living” shall refer to the home address of the member-borrower;
b. Must be under 65 years old at the end of the installment term;
c. Has not been granted any final benefit, i.e. total permanent disability or retirement;
d. Has not been disqualified due to fraud committed against the SSS;
3. Member-borrowers with final benefits application (Death, Total Disability, Retirement) whose contingency date is on or before the last day of the availment period of the restructuring program. Said final benefit claim must be filed within the availment period.
B. AREAS COVERED
For other short term member loans, the following are the covered calamities or disasters and their respective areas as declared by NDRRMC as under the state of calamity:
1. Ondoy (2009)
2. Sendong (2011)
3. Pedring and Quiel (2012)
4. Pablo (2012)
5. Labuyo (2013)
6. Southwest Monsoon (Habagat) enhanced by tropical storm Maring (2013)
7. Santi (2013)
8. Armed Conflict in Zamboanga City (2013)
9. Bohol and Cebu 7.2 magnitude Earthquake (2013)
10. Yolanda (2013)
11. Agaton (2013)
12. Glenda (2014)
13. Mario (2014)
14. Ruby (2014)
15. Seniang (2015)
16. Lando (2015)
17. Nona (2015)
(See more details in the next blog post)
C. RESTRUCTURED LOAN
The sum of principal and accrued interests of all past due short-term loans of the member-borrower shall be consolidated into one Restructured Loan (RL1).
D. PAYMENT TERM
1. Full payment – payable within 30 days from the approval date of restructuring application
2. Installment payment – payable in equal monthly amortization based on payment range as follows:
|RL1 Range||Applicable Term|
|P 2,000.00 to P 18,000.00||12 months|
|P 18,000.01 to P 36,000.00||24 months|
|P 36,000.01 to P 54,000.00||36 months|
|P 54,000.01 to P 72,000.00||48 months|
|More than P 72,000.00||60 months|
However, the member-borrower may elect his preferred payment term but not to exceed five years.
E. INTEREST RATE AND PENALTY
1. For installment term, RL1 shall be subject to interest rate of 3% per annum computed on a diminishing principal balance over the applicable payment term.
2. A penalty of 0.5% shall be charged against the amortization due for every month unpaid during RL1 term.
F. CONDITIONAL CONDONATION
Penalties shall be condoned after full payment of outstanding principal and interest of RL1 within the approved term. The balance of RL1 should be zero at the end of the term. Otherwise, the unpaid principal of RL1 and the proportionate balance of condonable penalty shall become part of a new principal under Restructured Loan 2 (RL2).
G. INTEREST RATE AFTER TERM EXPIRY
After the term of RL1 expires and the loan remains outstanding, the new principal balance under RL2 shall henceforth be charged with an interest rate of 10% per annum until fully paid.
H. OTHER CONDITIONS
1. The member-borrower must personally apply for the restructuring thru SSS branches (Over-the-Counter).
2. Member-borrowers who cannot personally apply for the restructuring program may execute a notarized Special Power of Attorney (SPA).
3. The member-borrower must execute an Affidavit attesting that he/she lived in the covered area during the calamity period specified (except for member-borrower with Calamity Loan or Salary Loan Early Renewal Program [SLERP]).
4. While the Restructured Loan is existing or outstanding, the member-borrower cannot avail other SSS short-term loan programs including Educational Assistance Loan Program.
5. The member-borrower may avail of SSS short-term loan program after six (6) months from the date of full payment of the Restructured Loan.
6. Once the member-borrower availed of this loan restructuring program, he/she is disqualified from availing of any future loan condonation/restructuring programs of SSS.
7. During the term of the restructured loan, the member-borrower shall notify SSS branch his/her updated contact information thru accomplishment of Member Data Change Request Form (SS Form E4).
8. In case of member-borrower’s death, total disability, or retirement, the total loan obligation or any unpaid amount of the loan as well as the interest and penalty, if any, shall be deducted from the final benefits.
V. NECESSARY FORMS TO BE FILLED OUT/EXECUTED ARE AS FOLLOWS:
a. Loan Restructuring Application
b. Statement of Loan Balances for Loan Restructuring Program (to be issued by SSS)
c. Affidavit of Residency
d. Disclosure Statement under the Loan Restructuring Program (to be issued by SSS)
e. Promissory Note (under full or installment payment)
f. Notice of Approval (under full or installment payment to be issued by SSS)
g. Special Power of Attorney
VI. DUE DATES & MANNER OF PAYMENT
1. Monthly installment shall be due for payment every 10th day of the month following the amortization month. Amortization shall start on the month immediately following the approval date of the Restructured Loan.
Restructured Loan Approval Month – April
1st amortization month – May
1st installment amortization is due on June 10
2. Payment shall be made through any SSS branch with tellering facilities or authorized collection agent of the SSS.
I hope this long post has addressed most if not all of your questions regarding the SSS Loan Restructuring Program.
If you want to know if you’re covered in this program, check out the next post for more details.
Disclosure: This post is sponsored by the Philippine Social Security System and is exclusively published here at Pinay Investor. All the information are sent by the Philippine Social Security System.
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