The Social Security System has once again launched its Loan Restructuring Program this year so delinquent SSS Borrowers can recover their good credit standing without having to pay higher interest rates and penalties.
The Loan Restructuring Program (LRP) will run from April 2 until October 2, 2018 and can be availed by member who failed to pay their salary, calamity, emergency and educational loans, and Study Now Pay Later Plan, Voc-Tech, Y2K and Investments Incentive Loans.
According to SSS President and Chief Executive Office Emmanuel Dooc, it is inevitable for member to pay these loans plus penalties and interests during their final claim.
“Loan payment is inevitable for our members. Even if they avoid paying the loan amount at present, these loans – the principal amount plus interests and penalties – will be deducted from any final benefit they are entitled to like retirement, total permanent disability and death,” Dooc said.
Thus, members are encouraged to settle their delinquent loans through LRP to avoid penalties and interests.
However, members who previously availed the LRP last 2016 and 2017 but remained delinquent in their loan payments would now be disqualified for this year’s program.
“Their balance would be restored to the previous amount,” said Mario Daray, SSS regional public information officer.
Dooc reminded borrowers who got approved for LRP applications last 2016 and 2017 that they do no longer qualified to apply for this year.
Members with final benefit claim prior to LRP availment period will not be approved for LRP. Members who also committed fraud against the state fund are automatically disqualified from the program.
LRP applicants who will be approved to avail the program this year will no longer be eligible to participate in any future loan condonation programs to instill credit discipline among members.
“While the availment period of the LRP is just six months, we still expect to generate about P1.2 billion income from the program and condone some P2.85 billion penalties of our members. This is our way of helping our members to clear their obligations within their capacity, as well as making sure that they have a secured future with their entitlement to full SSS benefits because we at SSS know that a majority of our members have undergone difficulties caused by disasters and calamities,” Dooc said.