More than 1.5 million retired pensioners may now borrow a maximum of Php 200,000 under the enhanced Pension Loan Program (PLP), according to Social Security System (SSS). The improved guidelines, pursuant to Social Security Commission (SSC) Resolution No. 429-s2019, intends to provide suitable financial assistance to qualified pensioners.
According to SSS President and Chief Executive Officer Aurora C. Ignacio, they can now loan up to 12 times their basic monthly pension plus the additional Php 1,000 benefit. Those receiving their SSS pension may submit their applications to SSS branches.
“We want our pensioners to know that we value them as one of our key stakeholders in recognition of their support to SSS during their prime, wherein their monthly contributions were the lifeline of the pension fund then,” she added.
SSS Office Order 2019-004-b mandates higher loanable amount up to Php 200,000 or up to 12 times the basic monthly pension plus the Php 1,000 bonus with longer payment terms and wider range for age qualification. The previous minimum loanable amount was just twice the basic monthly pension plus the Php 1,000 additional benefit.
Qualifications for SSS Pensioners Loan Application:
Retiree pensioners aged 85 years old and below at the end of the loan repayment term may avail this program granted they have no outstanding loan balances or benefit overpayment liability to SSS from his or her monthly pension. There should also be no existing advance pension under the SSS Calamity Package and the regular monthly pension has been received for at least a month. The borrower should also have an active pension status.
From previous payment terms of three, six, or twelve months, the approved loan shall now be payable in six, 12, or 24 months as chosen by the borrower. The first monthly amortization is due on the second month of the loan.
It has a fixed interest rate of %10 per annum until fully paid and becomes a part of the monthly loan amortization. There is no service charge from SSS, but a one-time insurance fee should be paid.
Last year, SSS implemented PLP in response to the growing number of senior citizens falling prey to loan sharks. It was designed to assist them with their short-term financial needs. Since September 2018, the state fund has released pension loans amounting to Php 1.4 billion.