SSS loan restructuring offer yields P1.3 billion

MANILA, Philippines — State-run Social Security System (SSS) has generated P1.31 billion in additional income during the first three months of implementation of a loan restructuring program (LRP), which offers penalty condonation to members with past due loans.

Since its rollout last April 2, the LRP has already benefitted 200,960 members and condoned P3.35 billion worth of penalties from these members’ overdue loans, according to SSS president and chief executive officer Emmanuel Dooc.

“When we launched the second LRP in April, we expected to attract 250,000 availees. But to our surprise, we’ve already reached the 200,000-mark in just three months of LRP implementation and we still have nearly three months to accept more LRP applications,” Dooc said.

The total amount of paid loans, as well as the amount of penalty condoned has already exceeded the initial estimate of the SSS.

Earlier, Dooc said the SSS expected to generate P1.2 billion in additional income from the payment of overdue loans, and to condone P2.85 billion in penalties under the loan restructuring scheme.

According to Dooc, the LRP is “serving its purpose of providing immense financial relief to our members by giving them the opportunity to clean up their loan records.”

“So I’m encouraging all member-borrowers with past-due short-term loans to avail of the program on or before Oct. 1,” he added.

This is the second time the SSS has implemented a loan restructuring program for its borrowers. The first was offered from April 2016 to April 2017, which generated roughly P6 billion from 800,000 members.

The program covers all SSS member-borrowers who have past due loans – such as salary loans, emergency loans, educational loans, Study Now Pay Later Plan, voc-tech loans, Y2K loans and investments incentive loan.

To qualify under the second LRP, the loan must be past due for at least six months, the SSS said.

Member-borrowers must also be residing or working in a calamity or disaster stricken area declared by the National Disaster Risk Reduction and Management Council (NDRRMC) or the national government.

However, borrowers who have approved LRP applications in 2016 to 2017 are no longer qualified to apply under the second LRP.

Moreover, members granted with any final benefit claim prior to the LRP availment period, and those who committed fraud against the SSS are disqualified from the program.

Likewise, approved LRP applicants cannot participate in any future SSS loan condonation or restructuring programs to instill credit discipline.