The Social Security System (SSS) said it has released more than P19.01 billion worth of salary loans to around 942,000 members in the first half of 2019.
Aurora Ignacio, SSS president and chief executive officer, said the loan releases grew 8.4 percent from P17.53 billion a year ago due to the rise in the number of member-borrowers from 886,208 in the first half of 2018 to 941,716 for the same period this year.
Salary loans represent almost the entire amount of loan releases for the first half of this year.
Of the total number of borrowers, 846,823 were employed members with a total of P17.67 billion worth of salary loans granted, 75,465 were voluntary members with P1.08 billion worth of loans released, 10,423 were self-employed members with P83.69 million worth of loans granted, and 9,004 were overseas Filipino worker-members with P163.07 million worth of loans released.
“Salary loan has a corresponding interest rate of 10 percent per annum based on the diminishing principal balance and shall be paid over 24 months or equivalent to two years. In case the borrower fails to pay it on time, SSS shall continue to charge a one percent penalty every month and 10 percent annual interest rate until the loan is fully paid,” Ignacio said.