The Social Security System has already released P49.8 million in pension loans to 1,976 pensioners who availed of the first-of-its-kind loan program piloted by the state-run pension fund this month.
In just 12 days after the pension loan program was launched on Sept. 3, Emmanuel F. Dooc, SSS president and chief executive officer, said they were “very much overwhelmed with the influx of applicants in our SSS branches.”
The pension loan was initially offered at 34 SSS branches across the country.
Dooc said 50 additional branches would offer the loan program for SSS pensioners, including 14 in Metro Manila that began to accept applications since Sept. 19, on top of 36 nationwide that will start offering the loan on Sept. 24.
“We hope that the loan privileges under the pension loan program will help our dear pensioners to finance their emergency and short-term financial needs,” Dooc said.
The SSS said the pension loan program, available to retiree-pensioners 80 years old and below, was initiated “in response to the clamor from senior citizens to put an end to the growing incidence of pensioners falling victims to lending firms that offer steep interest rates and to help them with their short-term needs like emergency medical expenses.”
Pensioners can quality for the loan as long as they have no outstanding loan balances nor benefit overpayment payables; no advance pensions under the SSS’s calamity package; as well as have been receiving their pensions for a minimum of six months.
“The loan amount will gain an annual interest rate of 10 percent until fully paid computed on a diminishing principal balance, which shall become part of the monthly amortization. The pension loan is payable within three, six, or 12 months depending on the loan amount and shall be deducted from the borrower’s monthly pension,” the SSS said.
“Qualified pensioners can borrow for as low as their basic monthly pension for two months plus the additional P1,000 benefit or as high as their basic monthly pension for six months plus the additional P1,000 benefit, not exceeding P32,000,” the SSS added.
Dooc reminded pensioners to personally apply and also bring at least two valid identification cards with photo and signature, preferably their Social Security Card or Unified Multi-Purpose Identification Card. /atm