The Social Security System (SSS) said more than 1.29 million members availed its short-term loan privilege through the SSS salary loan program in the first eight months of the year.
Aurora Ignacio, SSS president and chief executive officer, said in a statement yesterday the pension fund disbursed more than P26.33 billion worth of salary loans in January to August 2019.
This is 10.2 percent higher than the P23.89 billion recorded in the same period last year for more than 1.20 million borrowers.
The bulk of the releases went to nearly 1.16 million employed members with a total of P24.50 billion worth of salary loans, followed by more than 104,000 voluntary members with P1.49 billion, 12,411 overseas Filipino worker members with P233.01 million, and 13,724 self-employed members with P109.72 million.
“From 2014 to 2018, we have recorded a yearly average increase of 7.3 percent in the amount of salary loan releases and 6.9 percent in the number of borrowers,” Ignacio said.
The salary loan is the most availed loan program of the SSS, the pension fund said.
Under the program, members may borrow a loan amount of up to twice the average of their 12 latest posted monthly salary credits.
It is payable in two years in 24 monthly installments with an interest rate of 10 percent per annum based on its diminishing principal balance.
“The SSS’ salary loan program is our way of providing our members with the means to support their short-term or emergency financial needs. We are glad that more members are able to benefit from this program,” Ignacio said.