For those with overdue Social Security System (SSS) loans, now is the time to settle them and clear their financial obligations.
On Wednesday, March 6, the SSS said there is an ongoing loan condonation program aimed at waiving penalties accrued by borrowers with outstanding salary, calamity, emergency, and restructured loans.
Through the "Conso Loan" program, formally known as the Consolidation of Past Due Short-Term Member Loans with Condonation of Penalty, SSS will waive the penalties linked to borrowers' unpaid loans.
Under the Conso Loan program, the SSS will combine the principal and interest of a member's overdue short-term member loans into a single consolidated loan.
Rolando Ledesma Macasaet, SSS president and chief executive officer said all outstanding penalties will be consolidated and waived upon the complete settlement of the consolidated loan.
Macasaet said eligible members with outstanding loan dues in their salary, calamity, emergency, and restructured loans, including the Salary Loan Early Renewal Program (SLERP), can participate in this program.
However, interested members must fulfill certain criteria to be eligible for the program.
These requirements include having a past-due short-term member loan at the time of application, not having received any final benefits such as permanent total disability or retirement, not being disqualified due to fraudulent activities against the SSS, and having an active My.SSS account.
Members may submit their application for the Conso Loan program online through their My.SSS account.
“Members may pay their consolidated loan through a one-time payment within thirty (30) calendar days after receiving the approval notice, or they may also opt to pay through installment,” Rizaldy T. Capulong, SSS Investments Sector executive vice president said.
Members may also to opt for an installment plan, which requires a minimum down payment of 10 percent of the consolidated loan within 30 calendar days upon receiving the approval notice.
Subsequently, they can choose to settle the remaining balance over a period of up to 60 months, with the duration of the installment term varying based on the outstanding loan amount.
However, if a member does not meet the payment terms agreed upon in the consolidated loan agreement, the SSS will deduct the outstanding balance from the member's short-term benefits and final benefits.
Additionally, any remaining balance of the consolidated loan can be deducted from the death benefit paid to the member's beneficiaries or from any actual final benefit claims.
As of December 2023, SSS reported that over half a million members have benefited from the Conso Loan program, and SSS has already waived more than P7.3 billion in loan penalties.