The Social Security System (SSS) has called on its retiree-pensioners to avail of its low-interest Pension Loan Program (PLP) for their immediate financial needs instead of borrowing from Sangla-ATM lenders.
In a statement yesterday, SSS president and chief executive officer Rolando Macasaet said the pension fund launched PLP to assist SSS retiree-pensioners in their immediate financial needs by offering a loan program with a low-interest rate of 10 percent per annum computed on a diminishing principal balance, which is a far cry from those being lent by loan sharks.
“Aside from low interest rate, SSS will not require them to surrender their ATM cards as collaterals, unlike the practice of some private lending institutions. We also do not charge any processing or service fee when they avail of the pension loan,” Macasaet said.
Qualified retiree-pensioners can borrow a loan of up to three, six, nine or 12 times their basic monthly pension (BMP) plus the P1,000 additional benefit or their aggregate monthly pension with a maximum loan amount of P200,000.
Moreover, SSS will ensure their net take-home pension is at least 47.25 percent of their aggregate monthly pension when they start paying the monthly amortization for the pension loan.
The SSS chief said the PLP also has an extended repayment period.
“A pension loan of three and six times the pensioner’s aggregate monthly pension has a payment term of six and 12 months, respectively. A pension loan of nine or 12 times the aggregate monthly pension has a payment term of 24 months,” he added.
The first monthly amortization for pension loans is due on the second month after SSS granted the loan.
Further, the one percent service fee is waived to subsidize the payment for the borrower’s premium of the Credit Life Insurance.
To qualify for the PLP, retiree-pensioners must be 85 years of age or below at the end of the last month of the loan term; must have no deductions such as outstanding loan balance, benefit overpayment payable to the SSS, etc., from their monthly pension; must have no existing advance pension under the SSS Calamity Assistance Package; must be receiving their regular monthly pensions for at least one month, and the pension status is active; and must have updated mailing address and mobile number.
