Good news to all retired pensioners of Social Security System (SSS). You can now apply for affordable loans under Pension Loan Program (PLP) of SSS. The PLP was launched last September 3, 2018!
According to SSS President and Chief Executive Officer Emmanuel Dooc PLP is a response to the clamor from senior citizens who wants for a more affordable loan for their short-term needs such as emergency medical expenses. Aside from this, the program aims to end the increasing number of pensioner victimized by some financial institution that offers a loan with the high-interest rate.
Who Can Apply?
- Qualified retiree pensioners that are 80 years old and below at the end of the month of the loan term
- Pensioners with no outstanding loan balance and benefit over payment payable to SSS
- Pensioners who have no advance pension under SSS Calamity Package and have been receiving their regular monthly pensions for at least six months
How much is the loanable amount?
The minimum loan amount for qualified pensioners is twice the amount equivalent to their basic monthly pension and the additional P1,000 benefit.
The maximum loanable amount is six times their basic monthly pension plus the additional P1,000 benefit, not exceeding a total of P32,000
How much is the interest rate?
10% per annum until fully paid, computed on a diminishing principal balance, which shall become part of the monthly amortization
The loan repayment term of the loanable amount will be payable in three, six, or 12 months depending on the multiple of the loan amount and will be deducted from the monthly pension of the borrower.
What branches accept loan applications for PLP?
20 SSS Branches will initially accept PLP applications
- Pasig-Pioneer (Shaw)
- New Panaderos (Mandaluyong)
- Makati-Gil Puyat
- Iloilo Central
- Cagayan de Oro
- General Santos
How to Apply?
To apply, the borrower must apply for the PLP personally at any SSS branch and bring his Social Security Card or Unified Multi-Purpose Identification Card, or any two valid identification cards both with signature and at least one photo.
Upon submission of the identification requirements, the SSS will verify the information provided by the pensioner and if he is eligible to avail of the loan program.
SSS allocate P10 billion as an initial budget for the program. According to Dooc, there are 1.5 million retirees who can avail of the program starting September 3.