2011 SSS salary-loan releases reach P15.8B
TUESDAY, 22 MAY 2012 20:18 JONATHAN MAYUGA / CORRESPONDENT
Some 1.06 million Social Security System (SSS) members were granted
salary loans in 2011, with total disbursement amounting to P15.8 billion.
The amount was 41 percent higher than the P11.17 billion the SSS
released in 2010 for over 803,000 member-borrowers.
"The salary loan is among the most popular SSS programs, with loan
releases growing at an average rate of 14 percent for the past five
years," SSS Officer in Charge Edgar Solilapsi observed. "The fact that
the number of borrowers has hit the 1-million mark shows the tremendous
personal need that our salary loans fill in our members' lives."
The SSS salary loan is a privilege granted to active members with at
least 36 monthly contributions, six of which must be within the 12-month
period prior to the month of loan application. Salary loans are payable
in two years in 24 equal monthly installments at 10-percent annual interest.
The last time the number of borrowers reached 1 million was in 2009,
when 1.29 million members availed of the salary loan.
"Majority of the salary loan borrowers in 2011 were employees. Only 9
percent of the P15.8 billion, or P1.47 billion, went to self-employed
and voluntary members, including overseas Filipino workers," Solilapsi
added. "These numbers highlight the value of active SSS membership,
since only those who are updated in their SSS payments are entitled to
salary loans."
SSS reminded members to ensure that their salary loans are repaid on
time. Salary loan delinquency has long been a problem for the pension
institution, which is the reason behind its latest offering of the Loan
Penalty Condonation Program.
Under this new amnesty program, members are given the opportunity to pay
their overdue obligations and have 50 percent to 100 percent of their
accumulated penalties written off. The program opened ON April 2 and
will run until September 30.
"We urge members with delinquent loans to take advantage of this
opportunity before the program ends on September 30. Otherwise, they
will have to pay the full amount of penalties, and possibly have their
total loan balance deducted from final benefit claims, which by then
could balloon to the tens of thousands," said Solilapsi.
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