Many Filipinos take out loans from the Social Security System (SSS) to cover various expenses. These can include medical bills, home renovations, or even debt consolidation.
The SSS Consolidated Loan is a program that allows members to consolidate their outstanding loans from the SSS into one single loan. This has several benefits, chief among them having the penalty fees waived.
If you are an SSS member who has outstanding loans, then you may want to consider applying for the Consolidated Loan Program. In this article, we will discuss everything you need to know about the program, from eligibility requirements to how to apply.
SSS Circular 2022-022
Pursuant to Social Security Commission (SSC) Resolution No. 383-s.2022 dated 08 June 2022 approving the Consolidation of Past Due Short-Term Member Loans with Condonation of Penalty, the following Consolidated Loan Program Guidelines are hereby issued:
COVERAGE OF THE PROGRAM
All past due SSS Short-Term Member Loan (STML) accounts as follows:
- Salary Loan including Salary Loan Early Renewal Program (SLERP)
- Calamity Loan
- Emergency Loan
- Restructured Loan
Also included in the Program are the other Short-Term Member Loans as may be determined by the SSS.
“Past due” shall mean that the loan has an unpaid obligation consisting of principal, interest, and penalties equivalent to more than three (3) monthly amortizations, or the loan has remaining unpaid balance after its maturity.
EFFECTIVITY OF THE PROGRAM
Availment of this Program starts on October 4, 2022.
To be eligible, the member-borrower must satisfy all the following requirements:
- With loan account/s that is/are past due as of the time of the Consolidated Loan application;
- Has not been granted any final benefit, i.e. permanent total disability or retirement;
- Has not been disqualified due to fraud committed against the SSS; and
- With active My.SSS account.
Consolidated Loan Amount: How does the Conso Loan Program work?
All outstanding principal and interest of the member-borrower’s past due loan/s shall be combined into one (1) Consolidated Loan.
The unpaid penalties shall be consolidated separately and shall be subject to conditional condonation.
Member shall be allowed to pay in full or installment.
1. One-time Payment
Full payment of the Consolidated Loan within thirty (30) calendar days from receipt of the notice of approval of the Consolidated Loan Program Application.
Consolidated Loan amount of up to Five Thousand Pesos (P5,000.00) shall be for One-Time Payment only.
2. Installment Plan
- Downpayment of at least ten percent (10%) of the Consolidated Loan amount within thirty (30) calendar days from receipt of the notice of approval of the Consolidated Loan Program Application. However, a higher percentage of the Consolidated Loan may be elected as downpayment.
- The remaining balance shall be payable in equal monthly amortization based on loan range below:
Consolidated Loan Remaining Balance Maximum Term Above ₱5,000 to ₱10,000 6 months ₱10,001 to ₱18,000 12 months ₱18,001 to ₱36,000 24 months ₱36,001 to ₱54,000 36 months ₱54,001 to ₱72,000 48 months More than ₱72,000 60 months
The member may pay earlier than the Maximum Term by choosing a shorter payment term specified by the system or may choose to pay in full at any given time during the installment period.
In the event that the member applies for retirement or total disability benefit claim, or death benefit claim application by his/her beneficiary/ies, any unpaid Consolidated Loan balance, consisting of principal and interest with the applicable amount of penalty condoned, shall be deducted from the benefit proceeds.
Interest Rate and Penalty of the Consolidated Loan Under Installment Plan
Ten percent (10%) per annum to be charged on a diminishing principal balance and shall be amortized over the approved term of the Consolidated Loan until the account is fully paid.
Late payment of the monthly amortization shall be charged a penalty of one percent (1%) per month after its due date until fully paid.
Conditional Condonation: How are Consolidated Penalties Condoned?
The consolidated penalties shall be condoned as follows:
- One-time Payment Term – one hundred percent (100%) of the consolidated penalty shall be condoned upon full payment of the Consolidated Loan within the approved payment period.
- Installment Plan – penalty proportionate to the amount paid shall be condoned as follows:
- Upon payment of the required downpayment within the approved period, penalty proportionate to the percentage of downpayment shall be condoned.
- The remaining amount of penalty shall be fully condoned after full payment of the outstanding Consolidated Loan within the approved terms and conditions.
The balance of the Consolidated Loan should be zero at the end of the term. Otherwise, the Consolidated Loan account shall be deemed a defaulted account. Likewise, the uncondoned portion of the penalty shall be reimposed and shall become due and demandable.
When are SSS Consolidated Loan Account Considered in Default?
The Consolidated Loan shall be in default in any of the following instances:
- Failure to pay in full the agreed one-time payment or downpayment within the approved period;
- Non-payment of obligation equivalent to more than six (6) accumulated monthly amortizations;
- Failure to pay in full the installment plan within the approved term;
- Commission of any fraudulent acts against or violation of any regulations and guidelines of the Social Security System (SSS).
The full amount of the defaulted Consolidated Loan, including the uncondoned portion of the penalty, shall become due and demandable and must be paid in full without need for demand or notice.
The member-borrower shall be allowed to re-apply to Consolidated Loan Program to continuously enjoy waiver of penalty, subject to applicable sanction on loan renewal. In case of re-application, the defaulted account shall be closed, and a new Consolidated Loan account shall be setup.
Deduction of a Defaulted Consolidated Loan From Benefits
In case of default, the outstanding balance of the Consolidated Loan, composed of unpaid principal and interest, shall be deducted from from any benefit that may now or hereinafter be due to member-borrower or their beneficiaries.
These include short-term benefits (sickness, maternity and partial disability) and final benefit (retirement, total disability or death), as authorized by the SSC.
Any remaining unpaid balance of the defaulted Consolidated Loan shall continue to accrue applicable interest and penalties until fully settled.
Member shall be allowed to avail of a new loan program after three (3) months from the date of full payment of the Consolidated Loan.
Member-borrower with defaulted Consolidated Loan shall be allowed to avail of a new loan program after two (2) years from the date of full payment of the defaulted Consolidated Loan.
How to Apply for SSS Consolidated Loan Program
Submission of Consolidated Loan Application shall be through the member borrower’s My.SSS account.
Step 1: Go to sss.gov.ph
Step 2: Login to your My.SSS Account with your username and password
Step 3: Once logged in, click E-Services, then Loans, and Apply for Consolidation of Past Due Shorte-Term Member Loan with Condonation of Penalty Program.
For inquiries, members are advised to log on to www.sss.gov.ph or call at 1455 for assistance.
Who are eligible to apply for the SSS Consolidated Loan?
SSS member who has a loan account/s that are past due as of the time of application, has not been granted any final benefit, is active in their My.SSS account, and has not been disqualified due to fraud committed against the SSS.
When is the deadline of this program?
The Consolidated Loan Program with Condonation of Penalty has no deadline. This is a regular program of the SSS.
Paano mag apply sa SSS Consolidated Loan Program?
Sakaling ikaw ay mayroong delinquent/past due loan na hindi nabayaran ay maaaring umayon sa Consolidated Loan Program with Condonation of Penalty. Gamit ang iyong My.SSS Online account pumunta lamang sa E-services > Loans > Apply for Application for Consolidation of Past Due Short Term Member Loan with Condonation of Penalty Program.
Disclaimer: Images taken from SSS Facebook Page. Check the official post of the Philippine Social Security System on their official Facebook page regarding the SSS Consolidated Loan Program.
Read: SSS Condonation Program