The state-run Social Security System has said more than P451 million was allocated for the loan assistance program for its members and pensioners affected by tropical depression “Usman.”
SSS president and chief executive officer Emmanuel Dooc said qualified members and pensioners could apply for the calamity assistance package starting on Jan. 29 at any SSS branch.
It is estimated that more than 41,000 paying members and 1,000 pensioners residing in affected areas will benefit from the CAP.
“We hope that the SSS calamity assistance program would be able to help our members affected by tropical depression Usman address their immediate and short-term financial needs,” Dooc said.
Qualified members can avail themselves of calamity loan and direct house repair and improvement loan while pensioners can receive advance three-month pension.
Members and pensioners whose home address or property are in the calamity-stricken areas declared by the National Disaster Risk Reduction and Management Council may avail themselves of the CAP.
Areas declared by NDRRMC under state of calamity due to Usman were Oriental Mindoro, Albay, Sorsogon, Camarines Norte and Camarines Sur with an estimated P368 million worth of damage in agriculture.
Under the CAP, affected members can apply for calamity loans of up to P16,000 if they are paying contributions based on the maximum monthly salary credit.
In addition, they should have at least 36 monthly contributions, six of which must be paid within the 12-month period preceding the date of application.
The calamity loan assistance is separate from the regular salary loan. Members with outstanding salary loans in SSS can still avail of the calamity loan.
“The calamity loans are more affordable and has flexible payment terms, which are payable in two years in equal monthly installments with interest rate of 10 percent per annum, and 1 percent monthly penalty for late payments. We have also waived the 1 percent service fee to help reduce the applicant’s expenses,” Dooc said.
Based on SSS data, more than 41,000 are potential member-borrowers from the declared areas with average monthly salary credit pegged at P10,000.
Dooc added that OFW-members who reside within the declared calamity area also qualified to avail themselves of the calamity loan.
An authorization letter must be issued to their representatives who will file the CAP applications on their behalf.
He, however, reminded that those who are still paying their loan balance under the Loan Restructuring Program and previous calamity loans, as well as those with final benefit claims, such as total permanent disability and retirement, are not qualified under this assistance program for Usman-affected members.
Aside from the calamity loan, members with damaged homes can also avail of the Direct House Repair and Improvement Loan Program. It offers an interest rate of only 8 percent per annum for loan amount up to P450,000 while, 9 percent per annum for loan amount of P450,000 up to P1 million.
The special loan program also has a six-month moratorium in payment term and the 1 percent processing fee is waived.