The state-run Social Security System (SSS) on Friday announced that the Loan Restructuring Program (LRP) with penalty condonation was extended for another six months or until April 1, 2019.
“We are glad to announce that the second Loan Restructuring Program with penalty condonation will be extended for another six months to accommodate more members who have outstanding short-term obligations with the SSS,” SSS President and Chief Executive Officer Emmanuel F. Dooc said.
“The LRP is one of our ways to extend our assistance to our members who were not able to pay on time their loan obligations with the SSS. We understand that there were untoward instances like the occurrence of natural calamities such as earthquakes and typhoons that made loan repayments quite uneasy for them,” he added.
SSS launched the LRP with condonation program last April 2 and has since collected more than P2 billion income from nearly 300,000 availees for the first five months of implementation.
From April 2 to August 31, SSS was able to condone P4.3 billion penalties, resulting in restructured loans amounting to P4.9 billion.
“We are encouraging our members to immediately file their LRP applications and do not wait for the last minute filing next year. We’d like to remind them that their outstanding loan will still incur interests. SSS will only condone their penalties,” Dooc said.
To qualify for the LRP, member-applicants should be residing or employed in any of the calamity areas declared by the National Disaster Risk Reduction and Management Council (NDRRMC) or the national government. The short-term loan must also be overdue for at least six months.
Members can pay their overdue loan in full within 30 days with no additional interest, or apply for an installment payment term of up to five years with a minimal interest rate of three percent per annum.
LRP Applicants should bring duly accomplished LRP form, valid identification documents and Letter of Authority (LOA), in case the application is being filed by an authorized representative.