The Social Security System (SSS) on Wednesday said it collected more than P2-billion income from nearly 300,000 availees of the second Loan Restructuring Program (LRP) with penalty condonation, which was implemented on April 2, 2018.
SSS President and Chief Executive Officer Emmanuel F. Dooc said that as of August 31, a total of 296,086 member-borrowers have availed of the LRP with collections amounting to P2.1 billion.
“We’re glad that the LRP has once again served its purpose of providing members an immense relief from paying their loan delinquencies through flexible and affordable payment terms and conditional condonation of loan penalties,” Dooc said.
Within five months of the second LRP implementation, the SSS has already condoned P4.3-billion penalties, resulting in P4.9 billion in restructured loans.
To qualify for the LRP, member-applicants should be residing or employed in any of the calamity areas declared by the National Disaster Risk Reduction and Management Council (NDRRMC) or the national government. The short-term loan must also be overdue for at least six months. Based on SSS records, almost all of its members are either residing or employed in an area devastated by a calamity.
Members can pay their overdue loans in full within 30 days with no additional interest, or apply for an installment payment term of up to five years with a minimal interest rate of three percent per annum.
“In case the member failed to pay the restructured loan within the approved payment term, the outstanding loan delinquency shall be consolidated in Restructured Loan 2 , which incurs a higher interest rate of 10 percent per annum. So we strongly advise them to pay their monthly amortizations on time,” Dooc said.
Dooc further encouraged all members with outstanding loan obligations to avail of the program before it ends on Octorber 1 to avoid the hassle of last-minute filing.
“If they failed to apply for the LRP, their loan interest and penalty will continue to accumulate, making it harder for them to pay back their loans. That is why we advise them to file as early as now so that they can conveniently settle their loan obligations with the nearest SSS branch and enjoy their future SSS benefits without any deduction,” Dooc concluded.