SSS disburses P170 billion loans

MANILA, Philippines — The Social Security System (SSS)’s loan portfolio has reached around P170 billion year-to-date, largely comprising salary loans.

SSS president and CEO Robert Joseph Montes de Claro said the portfolio remains well within the agency’s lending limit, giving it room to expand its lending programs.

“Our loans currently stand at around P170 billion. So, even if you add the micro loans and the energy sustainability loans, we are still well within the balance of the portfolio that we are allowed by law to lend, which is up to 25 percent of our Investment Reserve Fund (IRF),” he said.

SSS has a lending limit equivalent to 25 percent of its IRF, which is projected to reach P1.5 trillion by year-end, giving the pension fund about P300 billion in lending capacity for its members.

The current loan portfolio has grown by about five percent year-on-year, SSS senior vice president of Lending and Asset Management Group Pedro Baoy said, which follows the increase in membership.

Meanwhile, De Claro said the agency earmarked about P40 billion for its SSS Micro Loan Program, also known as SSS LoanLite, which provides an alternative to high-cost informal lenders.

It has so far disbursed P1.81 billion to about 146,000 members.

“For the micro loan program, considering the behavior of the loan takeouts for the first month, I think if we can reach P10 billion by the end of 2026, we would consider the program very successful,” he said.

Qualified members may apply for loans ranging from P1,000 to P20,000, depending on the average of their 12 latest Monthly Salary Credits. It carries an interest rate of eight percent per annum.

SSS is also preparing about P40 billion for the energy sustainability loan program, which will offer loans of P200,000 to P400,000, payable in over four to seven years.

The energy program is expected to initially cover about 100,000 homes.

“We are also preparing the funding to ensure that once we release the program in the first quarter of next year, we can accommodate all members that qualified,” he said.

Meanwhile, SSS has released nearly P20 billion under its emergency loan program as of Sept. 20, out of the P26.68 billion allocated, Baoy said.

The emergency loan program will remain available up to April 30, 2027.