SSS President
and Chief Executive Officer Rolando Ledesma Macasaet said SSS launched
PLP to assist SSS retiree-pensioners in their immediate financial needs
by offering a loan program
with a low-interest rate of
10% 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 added.
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
maximum loan amount of
P200,000. Moreover, SSS
will ensure that their net
take-home pension is at
least 47.25% 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. On the other
hand, 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 1%
service fee is waived to
subsidize the payment for
the borrower’s premium of
the Credit Life Insurance
(CLI).
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 out - standing 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.”
Interested retiree-pensioners may submit
their loan applications at
the nearest SSS branch
office or through their
My.SSS account. Once
approved, loan proceeds
will be credited to their
nominated bank account
or UnionBank quick card,
within three working days
for online applications and
five working days if filed
over-the-counter through
the SSS branch.
