SSS disburses P26-B salary loans in Jan-Aug
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Wed, 11 Dec 2019 16:21:44 +0000
The Social Security System’s (SSS) salary loan disbursements in the first eight months of 2019 rose to P26.33 billion.
In a statement on Wednesday, SSS President and Chief Executive Officer Aurora Ignacio said the latest amount was 10.2-percent higher than the P23.89 billion recorded in the same period last year.
The number of members who availed themselves of the short-term loan privilege were also higher at 1.29 million, compared to 1.20 million a year ago.
The state-run pension fund also said the bulk of the releases went to nearly 1.16 million employed members with a total of P24.50 billion worth of salary loans, followed by more than 104,000 voluntary members with P1.49 billion, 12,411 overseas Filipino worker members with P233.01 million and 13,724 self-employed members with P109.72 million.
“From 2014 to 2018, we have recorded a yearly average increase of 7.3 percent in the amount of salary loan releases and 6.9 percent in the number of borrowers,” Ignacio said.
The SSS emphasized that salary loan is the most availed of its loan programs, where members may borrow a loan of up to twice the average of their 12 latest posted monthly salary credits.
It is payable in two years in 24 monthly installments with an interest rate of 10 percent per annum based on its diminishing principal balance.
To qualify for a salary loan, the SSS said the member must be 65 years old and younger at the time of application; has not been granted any final benefit such as permanent disability, retirement or death; and has not been disqualified due to fraud committed against the SSS.
The employer of a member-borrower must also be updated with the payment of contribution and loan remittances.
For the one-month salary loan, the SSS said members must have at least 36 posted monthly contributions, six of which should be within the last 12 months prior to the month of application while for the two-month salary loan, he or she must have at least 72 posted monthly contributions, six of which should also be within the last 12 months prior to the month of application.
Members should submit their salary loan applications online through My.SSS facility in the SSS website or SSS mobile application starting Nov. 11, 2019. Employed members’ applications shall also be certified online by their respective employers.
“The SSS’ salary loan program is our way of providing our members with the means to support their short-term or emergency financial needs,” Ignacio said.