By next week, the Social Security System (SSS) will offer calamity loan to members grappling with the lockdown imposed due to the COVID-19 pandemic.
Fernando F. Nicolas, SSS vice president for public affairs and special events, told a webinar on Wednesday (April 15) that the SSS would launch a nationwide calamity loan program for COVID-19 on April 24.
Members could borrow up to P20,000, or equivalent to a one-month salary credit.
According to Nicolas, the loan will be made available to all members for their needs from March to May.
The SSS had set aside some P20.4 billion for over 1.74 million members who were projected to need help as their jobs or sources of livelihood had been hit badly by the pandemic, Nicolas said.
Since mid-March, Luzon and most parts of the country were placed under quarantine to contain the spread of the COVID-19 disease.
The government had extended the initially one-month lockdown until April 30.
Given the movement restrictions amid the enhanced community quarantine, Nicolas said loan applications will be accepted through the SSS website or its mobile app as members can file using their My.SSS account.
“Once approved, loan proceeds will be credited through member’s enrolled bank account,¨ said Nicolas.
He said the loan is payable in 27 months, inclusive of the three-month moratorium period. Payments could start in the fourth month after date of loan approval, he said.
He said the SSS was waiving the 1 percent service fee. The loan would be charged a 10 percent interest per annum starting in the fourth month and would be computed “on a diminishing principal balance.¨
Nicolas also said the SSS was working on applying a moratorium on payments of housing and pension loans.
The SSS has already taken relief measures for members and pensioners that included early pension release, suspension of ¨proof of life¨requirements, extension of deadlines for contributions, and others.