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Friday, March 29, 2024

SSS releases P24.5b in salary loans

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The Social Security System has released P24.5 billion in salary loans to at least 1.16-million employed members in the first eight months of 2019.

More than 100,000 voluntary members ate up salary loan disbursements of P1.5 billion, while over 12,000 overseas Filipino workers were able to get P233 million only.

On the other hand, P109.7 million went to more than 13,000 self-employed members.

SSS has a total salary loan disbursement of P26.3 billion from January to August.

According to SSS and Chief Executive Officer Aurora Ignacio, the amount was 10.2-percent higher than last year’s P23.9 billion.

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“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,” she said in a statement.

A salary loan is payable in two years for 24 monthly installments with a 10-percent interest rate per annum.

Earlier, Ignacio said over 2.83-million pensioners were able to get P12.71 billion in 13th month pension disbursements in 2019. 

Meanwhile, SSS said more than 1.29-million members availed themselves of the short-term loan privilege of the pension fund through the SSS Salary Loan program from January to August 2019.

Ignacio said in a statement the pension fund disbursed more than P26.33 billion worth of salary loans in the first eight months of 2019. 

This is 10.2 percent higher than the P23.89 billion recorded in the same period last year for more than 1.20- million borrowers.

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 salary loan is the most availed of the loan program of the SSS. 

Under the program, members may borrow a loan amount 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 member must be under 65 years old 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. In addition, the employer of an employed member-borrower must be updated in the payment of contribution and loan remittances.

For the one-month salary loan, the member 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/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. Employed members’ applications shall be certified also 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. We are glad that more members are able to benefit from this program,” Ignacio said.

For the complete list of documentary requirements, members may inquire at any SSS branch, visit its website at www.sss.gov.ph, call its hotline at 8920-6446 to 55, or send an e-mail to member_relations@sss.gov.ph. 

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