SSS offers early renewal of salary loans

CITY OF SAN FERNANDO – Members of Social Security System (SSS) in Central Luzon, especially in flood-stricken provinces, can now avail of the early renewal of salary loans, said SSS president May Catherine Ciriaco in a statement yesterday.

She said easier terms for house repair loans and advance release of pension for members in typhoon and flood affected areas brought about by last week’s southwest monsoon rains enhanced by Typhoon Maring had been ordered.

Ciriaco, also the officer-in-charge of SSS lending and asset division, said the package is extended to calamity areas officially declared by various disaster risk reduction and management councils and local government units (LGUs).

In Central Luzon, the areas include the provinces of Bataan, Pampanga and Tarlac.

“We shall also consider all other areas that may later be declared under a state of calamity due to the effects of the recent habagat and tropical storm Maring,” Ciriaco said.

Under the calamity relief package, affected members can avail themselves of the salary loan early renewal program in which they can apply for another loan earlier than the prescribed date based on regular SSS loan guidelines, which is one year after the date of release.

As special consideration, the SLERP will lift the current sanctions imposed on borrowers in affected areas who had earlier availed themselves of the SSS loan penalty condonation program.

“The one percent service fee will also be waived under the SLERP. The net amount of the loan shall be the difference between the approved loan amount and the previous loan balance, and affected members have until October 31, 2013 to apply under this program at the SSS branch nearest them,” Ciriaco said.

She said the second component of the calamity relief package was the reduction of annual interest rates under the SSS Direct House Repair and/or Improvement Loan by two percentage points from the regular SSS rates of eight percent for loans worth P400,000 and below, and nine percent for higher loan amounts.

A member to be eligible must be 60 years old or below and has a minimum of 24 monthly contributions, at least three of which are within the 12-month period immediately prior to the month of filing their application.

“In effect, the applicable interest rates for the affected members will only be six percent or seven percent, depending on their loanable amount. The loan must be solely used for house repair and improvement,” she said.

“Our regular processing fee of up to P3,000 will be waived, and affected members are given one year from the date of issuance of the corresponding SSS circular to file their applications. This should give them enough time to gather the needed documents.” – Jess Malabanan