THE state-run Social Security System (SSS) said Monday, September 2, that it released more than P19.01 billion worth of salary loans to around 942,000 members in the first six months of 2019.
SSS President and Chief Executive Officer Aurora C. Ignacio said loan releases to members from January to June 2019 grew by 8.4 percent from P17.53 billion a year ago to P19.01 billion this year.
Ignacio said the increase in loan releases was due to the rise in the number of member-borrowers from 886,208 in the first half of 2018 to 941,716 for the same period this year.
"Salary loan is one of the most popular loan privileges of SSS. In fact, salary loans represent almost the entire amount of loan releases for the first half of this year," Ignacio said.
Of the total number of borrowers, 846,823 were employed members with a total of P17.67 billion worth of salary loans granted, 75,465 were voluntary members with P1.08 billion worth of loans released, 10,423 were self-employed members with P83.69 million worth of loans granted, and 9,004 OFW-members with P163.07 million worth of loans released.
To qualify for a one-month salary loan, a member must have at least 36 posted monthly contributions, six of which must have been paid within the last 12 months before the month of the loan application. Members who are qualified to receive a two-month salary loan must have at least 72 posted monthly contributions, six of which must have been paid within the last 12 months prior to the month of application.
"Members must be under 65 years old at the time of application and has not been granted any final benefit such as total permanent disability, retirement, and death," Ignacio added.
Interested self-employed and voluntary members may personally submit their salary loan application and other supporting documents at any SSS branch or by using the SSS Self-Service Information Terminals (SSITs) located in selected branch offices nationwide. They may also submit their application online using their My.SSS account on the SSS website, or via smartphone using the SSS Mobile App.
Employed members, on the other hand, should submit their duly-accomplished Salary Loan Application form to their company's Human Resource Department or directly submit their applications online through the My.SSS accounts with employer's validation and certification.
"OFW-members with registered My.SSS accounts may also submit their salary loan application online. Also, they still have the option to visit our SSS Foreign Offices to personally submit their application," said Ignacio.
In case there is no available SSS office in a particular country, OFW members may designate an authorized representative in the Philippines to submit their application and supporting documents that are duly certified by the Philippine Consulate Embassy.
Qualified members can receive a salary loan as high as twice the average of the borrower's latest 12 posted monthly salary credits (MSC), rounded to the next higher MSC or amount applied for, whichever is lower.
Member-borrowers shall receive their salary loan proceeds through check or credited to their personal bank accounts under SSS-accredited partner banks.
The SSS Chief also appealed to all member-borrowers to religiously pay their monthly amortizations within the agreed-upon payment term to avoid accumulating interest and penalty.
"Salary loan has a corresponding interest rate of 10 percent per annum based on the diminishing principal balance and shall be paid over 24 months or equivalent to two years. In case the borrower fails to pay it on time, SSS shall continue to charge a one percent penalty every month and 10 percent annual interest rate until the loan is fully paid," Ignacio said.
"To avoid any inconvenience on your final claims such as retirement or death claims, we are urging the public to pay your obligations on time to avoid incurring higher obligations caused by penalties and interests," she added.
To closely monitor the salary loan application status and payments, member-borrowers may check their My.SSS accounts via SSS website, SSS Mobile App, and SSS Self-Service Information Terminals (SSITs) in selected SSS branches nationwide. They may also call the SSS Hotline at 920-6446 to 55 and local Toll-Free Services at 1-800-10-2255-777 and send appropriate keywords via SMS using the Text-SSS facility. (PR)