STATE-RUN Social Security System (SSS) on Friday, Dec. 13, 2019, has reminded its members who wish to avail themselves of their salary loan privilege that they should register and apply through the pension fund’s online facility My.SSS.
“In line with our commitment to make our services readily available to our members anytime and anywhere right at their fingertips, we are reminding our members that the salary loan is now available via online application through the My.SSS facility,” said SSS president and chief executive officer Aurora Ignacio.
“For our members who have been availing of the salary loan since 2011, especially for employed members, it is not a new thing for them as they already have the option to apply for this privilege through their My.SSS account or through any SSS branch nationwide,” Ignacio added.
As stated in SSS Circular 2019-014 and approved by the Social Security Commission, the policy-making body in SSS, all members who wish to avail themselves of the salary loan are now required to register on the My.SSS online facility and submit their application online.
“Our members need not visit the physical branch just to file their loan application. All they have to do is register on the My.SSS facility if they are not registered yet and select the salary loan application. For self-employed, voluntary and overseas Filipino workers, the processing of the loan starts right after the submission of the application while for employed members, their employer must certify the loan application through My.SSS facility for the loan to be processed,” Ignacio explained.
Ignacio said once the loan application is approved, the member will immediately receive a confirmation text and email from SSS notifying him of the status of his application.
At present, the salary loan proceeds will be released to the member through check but as soon as the new system of the pension fund is in place by the middle of December, the loan proceeds will be credited to their Umid-ATM with EMV capability or to their nominated savings account.
Popular loan product
“The salary loan is one of our most popular programs in SSS. That is why we have decided to enhance its features, allowing our members to maximize their time doing other things while waiting for their loan approval without the hassle of queuing in SSS branches,” Ignacio said.
“They also need not worry about the inconvenience of encashing their checks once their loan is approved. All they have to do is to withdraw their loan proceeds at any automated teller machines at their convenience,” she added.
Based on available reports, more than 1.46 million members have availed themselves of the salary loan from January to September 2019 with P29.98 billion worth of loans released to member-borrowers.
The salary loan is the most availed loan program of the SSS. Under the program, members may borrow up to twice the average of their 12 latest posted monthly salary credits.
It is payable 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. (PR)