SSS Loan Restructuring and Condonation Program 2017

If you have an existing unpaid SSS loan from years back and have decided to check on it, you might be surprised to learn that it have significantly increased from the principal and interest. The bad news is you would still pay for that large amount once you get your final benefit from SSS.

The good news; SSS is currently offering a Loan Restructuring/Condonation Program. The program started last April 28, 2016 and will last until April 27, 2017.

Covered type of loans are as follows:

1. Salary Loan
2. Emergency Loan
3. Educational Loan (old)
4. Study Now Pay Later Plan
5. Voc Tech Loans
6. Y2K Loans
7. Investments Incentive Loan

The SSS Loan Restructuring Program aims to help ease the burden of calamity-stricken workers who were unable to pay their SSS loan after being affected by various calamities that have devastated some parts of the country. Only short-term loans that were past due for at least six months on the first of the restructuring period are eligible.

To be qualified for the Loan Restructuring Program, you should be a member who lives or resides in calamity/disaster declared area as of
disaster date or as of application date.

Here is the complete list of covered areas:

If only the province name is indicated, it means the whole province was put under calamity by NDRCC and all areas under it would be qualified for the SSS Loan Condonation Program.

If the member-borrower used to live in a calamity-stricken area, he or she can still apply for the program. He/she just needs to submit an AFFIDAVIT OF RESIDENCY.

For Local Members, download the AFFIDAVIT OF RESIDENCY here.
For OFW Members, download the AFFIDAVIT OF RESIDENCY here.

Also, the SSS member availing the program should be under 65 years old at the end of installment term, and has not been granted any final benefit like retirement or total permanent disability.
SSS members who have committed fraud against SSS and proven are disqualified from applying for the program.

Members have an option to settle their unpaid accounts within 30 days or through installment basis if their loans will be restructured. The installment payment scheme is as follows:

12 months for loans worth Php 2,000.00- Php 18,000.00;
24 months for loans worth Php 36,000.00 and below;
36 months for loans worth Php 54,000.00 and below;
48 months for loans worth Php 72,000.00 and below;
60 months for loans worth 72,000.00 and above.
For amount less than Php 2,000, the member is advised to pay in full.

If you would avail the installment term, you would be subjected to 3% diminishing interest rate per annum. For every unpaid due per month, a penalty of 0.5% shall be charged.

For the existing penalties of the SSS Loan applied to the Loan Restructuring program be condoned, the member should fully pay the first Restructured Loan (RL1) at the end of the term. If not, the unpaid principal of RL1 and the equal condonable penalty shall become a part of a new principal (RL2) where new conditions shall be met. It would have a higher interest rate of 10% per annum until fully paid.

The due date for payment of monthly installment shall be every 10th day of the month following the amortization month. The member availing the Condonation program may pay at any SSS branch or authorized collection agent of SSS.

Take note of the following if you are to avail of the Loan Restructuring Program:

You cannot avail of other short-term loan while you still have an outstanding restructured loan.

After you fully paid the restructured loan, you may only apply for a short-term loan after six months.

You should update your contact details at nearest SSS Branch by through the Member Data Change Request or SS Form E-4.

In case of death, retirement, or total disability, the total loan obligation as well as the interest and penalty if any, shall be deducted from the final benefits.