SSS Loan Restructuring Program

SSS Loan Restructuring Program is Available Again this 2018

The SSS Loan Restructuring Program or SSS LRP will be available again starting April 2, 2018.

To all SSS members who have past due loans with the Social Security System, this is your chance to finally pay off your loans. With LRP, your loan penalties will be condoned or deducted from your loan balance which will make it easier for you to settle your loan.

Why apply for SSS Loan Restructuring Program 2018

In an example that I have shared in a previous post, an SSS member who had a total SSS loan balance of ₱67,000, saved nearly half of this amount after she availed of the SSS Loan Restructuring Program (SSS Condonation) in August 2016.

How come her loan balance is that big? Well, let’s take a look at the details here:

  • She availed of the SSS Salary Loan amounting to ₱18,000 in June 2005
  • After almost 11 years of not paying her loan, the Interest ballooned to ₱17,500 and the Penalty incurred was ₱31,500.
  • Her TOTAL Loan Balance became Php 67,500.

As you can see, the total loan balance was already more than 3 times the amount of the loan that she received a decade ago.

And like any ordinary SSS member, this amount is too much to be paid off and she couldn’t afford to pay it anymore. She didn’t even think of continuing her membership with the SSS because she thought she could no longer pay off her loan.

But things changed when the SSS offered the first SSS Loan Restructuring Program in 2016. She went to the SSS branch to personally inquire about the LRP. After the SSS officer explained to her the details of the SSS condonation program, she committed to pay off her SSS loan balance within 1 year or 12 months.

And because of the SSS Loan Restructuring Program, she only paid ₱37,000 instead of ₱67,000. The penalty was completely waived or deducted from the Total Loan Amount.

After 12 months, her SSS loan balance was fully paid off. 

That’s how helpful this SSS Loan Restructuring Program is and this is exactly why the Social Security System is encouraging all SSS members with past due loans to pay off their loans while the SSS LRP is still available.

Take note: This LRP won’t be available for a long time.

In fact, this second Loan Restructuring Program will only be available from April 2 to October 1, 2018. That’s only 6 months compared to the first LRP which was available for 1 year from April 28, 2016 to April 27, 2017.

And they made the second LRP available one year after the first one ended in April 2017. So, don’t wait for the third LRP as it may take a while, or who knows, it may never happen again.

Grab this opportunity to pay off your past due loans from the SSS while the Loan Restructuring is still available. Check out all the details below on how you can apply for LRP.

What is Loan Restructuring Program?

SSS Loan Restructuring Program or LRP is a program of the Social Security System that aims to help SSS members pay off their past due loans by deducting their loan penalties from their total loan balance.

It is also SSS’ way of helping those who were affected by calamities and disasters in different parts of the Philippines who could not pay off their loans, thus, they’re unable to avail of SSS benefits or apply for additional loans for their immediate needs.

Who CAN Apply for SSS Loan Restructuring Program?

1. All member-borrowers who have past due loans including:

  • Salary Loan
  • Emergency Loan
  • Educational Loan (old)
  • Study Now Pay Later Plan
  • Voc-Tech Loans
  • Y2K Loans
  • Investments Incentive Loan.

Important: To qualify under the second LRP, the loan must be past due for at least six months from the start of the second implementation of LRP, which is on April 2.

2. All member-borrowers must be residing or working as of the date of the disaster in a calamity/disaster-stricken area declared by the National Disaster Risk Reduction and Management Council (NDRRMC) or in the case of Ondoy, by the National Government.

Click here: Complete List of Calamity or Disaster-stricken Areas in the Philippines

Even if you were not directly affected by these calamities or disasters, it is possible that your place was once included under state of calamity.

For example, during typhoon Ondoy in 2009, not all areas in NCR were flooded and not all residents were affected. But you know what, the entire NCR or National Capital Region, including Metro Manila was declared by the national government under State of Calamity.

Therefore, if you were working or residing anywhere in Metro Manila during typhoon Ondoy or even right now when you apply for LRP, you are still eligible.

Who CANNOT Apply for LRP?

1. SSS members who have approved LRP applications in 2016 to 2017 are no longer qualified to apply under the second LRP.

2. SSS members who have been granted with any final benefit claim like retirement, total permanent disability and death prior to the LRP availment period are not qualified to apply for LRP.

3. SSS members who committed fraud against the SSS are disqualified from the program.

What are the Requirements to apply for SSS Loan Restructuring Program?

  • Statement of Loan Balances
    • You can get this from the SSS branch (Inform the SSS officer that you want to apply for LRP)
    • You can also find your Statement of Loan Balances when you login to your My.SSS account but it would be better if you inquire personally at the SSS branch so that they can compute your loan balance with the LRP.
  • SSS LRP Application Form
    • You can get this from the SSS branch or download it here
    • Fill out this form completely and accurately
  • Affidavit of Residency
    • You can get this from the SSS branch or download it here
    • Go to the nearest Notary Public Office and have this document notarized for ₱150 or less
    • This affidavit is a proof that you live/work or have lived/worked in a calamity/disaster-stricken area
  • 2 Valid IDs
    • Examples are UMID or SSS ID, valid Passport, Driver’s License
    • IDs must have a signature and at least 1 valid ID with picture
    • Bring supporting documents such as Birth Certificate, NBI Clearance, etc, if you have only 1 valid ID

How to Apply for LRP or SSS Loan Condonation

Step 1

Prepare all the requirements needed for your SSS Loan Restructuring Program application.

  • 2 Valid IDs
  • Statement of Loan Balances
  • Notarized Affidavit of Residency
  • Completely filled-out SSS LRP Application Form

Step 2

Go to the nearest SSS branch. Proceed directly to the Information Counter and inform them that you’re going to apply for SSS LRP.

If you already have the forms and requirements ready, tell them immediately or show it to them so that they can give you your queue number.

Step 3

When your Queue Number is called or flashed on the screen, immediately proceed to the SSS officer and submit all the forms and requirements.

The SSS Officer will explain to you the details of the SSS Loan Condonation Program and he/she will recompute your loan balance based on your capacity to pay. Example: full payment or installment basis for 12 months, 24 months, or for a maximum of 60 months or 5 years.

Step 4

Pay your SSS loan balance according to the agreed payment terms. If you’re going to pay in full, then do so. If you’re going to pay in installment basis, then pay your loan balance until its complete.

For OFWs and other SSS Members who cannot apply personally

If you’re an OFW or if for some reason you can’t apply for LRP personally, follow these instructions:

  1. Prepare all the required documents for LRP Application
    • Statement of Loan Balances
    • Completely filled-out SSS LRP Application Form – download it here
    • Affidavit of Residency for Foreign Office – download it here
    • Original Copy of Special Power of Attorney (SPA) – download it here
    • Photocopy of 2 valid IDs each of the member-borrower and the filer (or representative).
  2. If there’s an SSS office in the country where you’re at, you may submit all the requirements personally. Or you may authorize a representative and have him/her submit all the requirements to any SSS branch in the Philippines or to the SSS office abroad.
  3. After the verification and loan re-computation procedures, pay your loan balance based on your agreed payment terms.

Why Pay your Loan ASAP

Remember, the more you delay your loan payment, the higher your penalties and interests will become.

So, go ahead and apply now for the SSS Loan Condonation 2018 program and set yourself free from the penalties that your SSS loan incurred over the years.

Is it Worth Paying your SSS Loan?

Many of you may have asked this and you may have thought that it’s not worth paying your SSS loan especially if it has already ballooned to ₱67,000 just like the SSS member that I talked about at the beginning of this post.

At first, she thought that she’d rather save the money that she’s supposed to use to pay off her past due loan with the SSS. Good thing she changed her mind and paid her loan completely.

You know why? 

Because a few months after she paid her loan, something happened to her which resulted to her being partially disabled. When she filed for SSS Disability claim, it was approved and she received a lump sum amount which is nearly ₱50,000. She’s still receiving a monthly pension of around ₱2,500 while the SSS pays her monthly contributions as part of her disability benefits.

If you’re going to ask me if it’s worth paying the SSS loan, my answer is definitely YES. And if I have a past due loan, I will definitely take advantage of the SSS Loan Restructuring Program.

Life is full of uncertainties. We don’t know what will happen to us tomorrow, next month, or a few years from now. Having someone like the SSS somehow gives us hope that if something happens to us, they will be there to assist and help us financially.

If you want to read more about SSS Loan Restructuring Program, click the articles below:

SSS Answers

View Comments

  • Hi sir/ma'am, ako po ay nakapag avail na sa LRP by. Sss mula po march2018, subalit Hindi po ako nakapag bayad mula apri to June 2018, tanong ko po puwede ko pa bang mabayaran ang tatlong buwan na nabutas at magkano ang magiging penalty at ano ang kondisyon, please response po salamat.

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