A new loan restructuring program ( LRP) has been introduced and offered by the state-run Social Security System (SSS). The program will allow its members pay their past due loan and interest whether in full or installment basis.
The loan restructuring program is open to all with past due calamity and short-term loans which can be available withing the one-year period from April 28, 2016.
In a statement by Boobie Angela A. Ocay, SSS assistant vice-president, members can clean up their overdue loan principal and interest in full or by installment under a restructured term depending on their capacity. Both payment schmes offer condonation of loan penalties.
“The LRP is in response to the widespread clamor from individuals and organizations to alleviate the burden of calamity-stricken workers, who face difficulties in paying their SSS loans after suffering from natural and man-made disasters that have devastated our country in recent years,” Ocay said.
The loan restructuring program will give a chance to delinquent members regain their good SSS standing, thus will give them the privelege to enjoy other SSS benefits. For instance, a borrower may be able to renew SSS loan just after six months of having paid in full their overdue principal and interest.
On the other hand, loan restructuring program may only be availed once. A member borrower can no longer participate for any future SSS condonations or loan reastructuring program.
LRP may be filed at any SSS branch and monitor their loan statement of account at the SSS website. The program covers calamity loan borrowers in the 1990s following the Mt. Pinatubo eruption and 1990 earthquake, and members with past due short term loans in declared calamity areas after the onslaught of tropical storms and typhoons Ondoy in 2009; Sendong in 2011; Pedring, Quiel and Pablo in 2012; Labuyo, Maring, Santi, Yolanda and Agaton in 2013; Glenda, Mario, Ruby and Seniang in 2014; Lando and Nona in 2015. Also included are the Zamboanga armed conflict and the Bohol-Cebu earthquake which both occurred in 2013.
Ocay has reminded that members cannot run over unpaid loans. “Members cannot avoid paying their overdue SSS loans since these are deducted from final benefit claims such as retirement, total permanent disability and death. Any delay in loan payments lead to accumulation of interest and penalties. Hence, we urge qualified borrowers to apply for the LRP, he said.
In addition to installment payment offered, the borrower may opt to pay the outstanding principal and interest in full. SSS shall waive all the loan penalties after the member has completed paying the restructured loan for both schemes.