Here's How You Can Avoid Penalty Fees If You Have Unpaid SSS Short-Term Loan

Budgeting and financial planning is a must for parents and the ideal scenario is to always set aside money monthly for expenses and savings. But sometimes, unexpected events happen that can mess up our budget and would require us to get a backup through a loan.

Aside from its benefits program, Social Security System (SSS) has been offering short-term loans to help its members during financial emergencies. Among its loan programs are:

• Salary Loan
• Calamity Loan
• Salary Loan Early Renewal Program (SLERP)
• Emergency Loan
• Restructured Loans under the Loan Restructuring Program (LRP)

If you availed of one of the loan programs mentioned above and weren't able to pay on time, SSS has good news for you!

From November 15, 2021, to February 14, 2022, the state-run pension fund is offering the Short-Term Loan Restructuring and Penalty Condonation Program (STMLPCP). Under this program, member-borrowers can pay their unpaid loans, penalty-free!

It's part of the agency's initiative to help Filipinos hit by the economic impact of the COVID-19 pandemic.

“We continue to respond to the needs of our members who were greatly affected during this pandemic.

Through the STMLPCP, SSS offers conditional loan condonation by waiving their accumulated penalties once their loan principal and interest are fully paid,” SSS President and Chief Executive Officer Aurora C. Ignacio said.

Who are qualified to apply for the program?

Member-borrowers can apply for the condonation program online using their My.SSS accounts and must meet the following requirements:

1. Members with short-term member loans that are past due for at least six months as of the first day of the condonation availment period.
2. Members who have not been granted any final benefit such as permanent total disability or retirement.
3. Members who have not been disqualified due to fraud committed against the SSS.
4. Members who will file their final benefits application for permanent total disability or retirement, whose contingency date is on or before the last day of the availment period of the condonation program.
5. Heirs or beneficiaries of deceased member borrowers who will file the death benefit application, whose contingency date is on or before the last day of the availment period of the condonation program
6. For member-borrowers who will pay their consolidated loan on an installment basis, their age must be under 65 years old at the end of the installment term.

For guidelines on the loan payment and interest terms, you can read the full SSS circular here.

Know more about the various loan programs SSS is offering to its active members and pensioners here.

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