SSS launched Pension Loan Program
SSS – The Social Security System has officially introduced its new loan program for its retiree-pensioners.
On Tuesday, SSS President and CEO Rolando Macasaet said in a statement that the private sector workers’ pension fund launched the Pension Loan Program (PLP) that offers a low interest rate of 10% per year.
The private sector workers’ pension fund is also urging its retiree-pensioners to avail of its low-interest loan to cover for their financial needs instead of borrowing from loan sharks.
Macasaet said SSS will not require its retiree-pensioners to surrender their ATM cards as a collateral, adding that they don’t charge any processing or service fee when they avail of the pension loan.
Under this new loan program, qualified retiree-pensioners can borrow a loan of up to three, six, nine, or 12 times their basic monthly pension (BMP) plus the PHP 1,000 additional benefit or their aggregate monthly pension with a maximum loan amount of PHP 200,000.
Also, the private sector workers’ pension fund ensures that the net take-home pension of pensioner borrowers would be “at least 47.25%” of their aggregate monthly pension when they start paying the monthly amortization for the pension loan.
This loan program also has an extended repayment period.
Macasaet said that a pension loan of three and six times the aggregate monthly pension of a pensioner has a payment term of 6 and 12 months, respectively, while a pension loan of 9 or 12 times the aggregate monthly pension has a payment term of 24 months.
For those retiree-pensioners availing this loan program, the first monthly amortization for pension loans is due on the 2nd month after SSS granted the pension loan. Moreover, the 1% service fee is waived in order to subsidize the payment for the borrower’s premium of the Credit Life Insurance (CLI).
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