Deadline nears for SSS loan restructuring

MANILA, Philippines — State-run Social Security System (SSS) has urged its members with unpaid loan obligations to apply for its Loan Restructuring Program (LRP) with penalty condonation.

In a statement, SSS officer-in-charge Aurora Ignacio called on eligible members to immediately submit their LRP applications before the deadline of applications on April 1.

“We appeal to our members to please avoid the rush. We encourage those who have unpaid loans to immediately file their LRP applications at any SSS branch near them before the last day of application on April 1 to minimize the influx of applicants on the last day,” Ignacio said.

The SSS implemented the LRP in response to the clamor of members who failed to pay their loans due to financial constraints caused by calamities.

The program offers member-borrowers an opportunity to settle their past due short-term loans without penalties through a conditional condonation.

“We will condone penalties after the member’s full payment of the outstanding principal and interest of the restructured loan within the approved term,” Ignacio said.

Members may opt to pay their overdue loan in full within 30 days with no additional interest, or apply for an installment payment term of up to five years with a minimal interest rate of three percent per annum.

Since the program’s launch in April 2 last year, the SSS was able to condone over P21.5 billion in penalties, and restructured P23 billion worth of loans of over 1.41 million members.

“We’re hoping more members will avail of the program before the deadline,” Ignacio said.

To apply for the program, members should bring a duly accomplished LRP form, valid identification documents and a letter of authority in case the application is being filed by an authorized representative.

The program covers short-term loans including calamity loans, salary loans, emergency loans, educational loans, Study-Now-Pay-Later plan, voc-tech loans, Y2K loans and investment incentive loans.

 The short-term loan must also be overdue for at least six months.

Aside from the LRP, the state fund is now accepting applications for its penalty condonation program, which seeks to provide delinquent members and employers who failed to remit their SSS contributions a clean slate.

The program will run until Sept. 6, 2019.

About P10.66 billion in unpaid premiums, based on established collectibles, are expected to be collected from this one-time amnesty program, Ignacio said.

She said the SSS also expects to waive about P13.91 billion worth of penalties if all employers tagged as delinquent would file and avail themselves of the condonation program.