SSS: Up to P1 million loan ready for typhoon-hit members

MANILA, Philippines — Members of state-run Social Security System (SSS), whose houses were destroyed by Typhoon Fabian in July,  may borrow up to P1 million to rebuild their homes.

SSS president and CEO Aurora Ignacio yesterday said the agency is offering a series of calamity assistance packages to members and pensioners in areas ravaged by the typhoon to help them get back on their feet.

“Through these programs, we aim to provide members and pensioners with the financial means to recover from the effects of Typhoon Fabian,” Ignacio said.

Under the initiative, the SSS will roll out the Calamity Loan Assistance Program (CLAP) and the Direct House Repair and Improvement Loan for members. On the other hand, SSS pensioners in affected areas will be given the opportunity to borrow an amount equivalent to three months of their benefits.

The CLAP, as well as the three months pension advance, will run until Feb. 1, 2022. As for the Direct House Repair and Improvement Loan, members are granted until Oct. 2022, to decide whether to apply for the package.

Under the CLAP, members may borrow an  amount equivalent to the average of their last 12 monthly salary credits rounded up to the nearest thousand or the amount they applied for, whichever is lower.

The loan has an interest rate of 10 percent per annum, where the one percent service fee is waived, and should be paid in two years in equal installments every month.

According to the SSS, it will charge a penalty of one percent per month for late payments.

Further, members whose houses were ruined or knocked down may secure a loan of up to P1 million under the Direct House Repair and Improvement Loan. The loan has an interest rate of eight percent for below P450,000 and nine percent for above that amount.

The loan comes with a six month moratorium in paying the principal and interest, together with a waiver on the processing fee similar to CLAP. The payment can be completed in either five, 10, 15 or 20 years, and should be made in equal installments as well every month.

However, the term should settle within the economic life of the house after the repair was done, as well as the difference between the age of the applicant and 65.