PRIVATE sector workers need not fall prey to loan sharks, says the Social Security System (SSS) as it urged paying members to seriously consider the agency’s initiative extending short-term cash loans to provide immediate financial relief.
Since January, SSS has been sealing partnership in the form of memorandum of agreement with government and private banks for the rollout of the SSS Loan Lite, a digital microloan program designed to provide qualified SSS members with accessible, secure, and affordable financial assistance for immediate needs such as emergency expenses, medical needs, educational costs, home essentials, and small business support, among others.
The loan lite is accessible through the digital platform or mobile app of the Participating Financial Institutions (PFIs) which include the UnionDigital Bank, Rizal Commercial Banking Corporation (RCBC) through its DiskarTech app, the Land Bank of the Philippines, and Union Bank of the Philippines.
Under the SSS micro loan program, members in good standing may secure P1,000 to P20,000 loan depending on the member’s average 12 latest Monthly Salary Credit (MSC) and applicable program guidelines.
Repayment period varies — 15, 30, 60, or 90 days, with an interest rate of 8 percent per annum, equivalent to approximately 0.67 percent per month.
The loan proceeds are credited directly to the borrower’s account with the participating financial institution.
No employer certification required, too.
The micro loan program is open to eligible employed, self-employed, voluntary, and OFW members. To qualify for a member must be at least 18 years old at the time of application and below 65 years old at the end of the loan term.
However, loan applicants must have at least 12 posted monthly contributions, have no past due short-term member loan, no pending or settled final benefit claim (such as retirement or permanent total disability), no active Restructured Loan, and have no record of fraud against SSS.
A loan lite application must also have an account enrolled in the online facility of a participating bank or financial institution.
Borrowers only need to access the mobile app or online facility of the participating financial institution and select “SSS LoanLite” or “SSS Micro Loan.” The app provides step by step instructions.
The process however comes with minimal charges. A maximum of P200.00 per loan transaction plus add-on fee not exceeding 3 percent per annum of the loan amount shall be deducted from the loan proceeds as fees for the services of the participating financial institution.
For any unpaid loan after the term, continuing interests and penalties shall be charged on the outstanding principal balance until fully paid. No other fees related to the loan shall be charged by the participating financial institution to the member-borrower.
The participating financial institution will facilitate the application, credit evaluation, approval, and disbursement processes in accordance with the program’s approved guidelines.
Upon approval, the loan proceeds will be credited through the applicable account with the participating financial institution.
Repayments will be collected as scheduled by the participating financial institution, through automatic-debit-arrangement or its default collection mode, mainly from the account where the loan proceeds were credited.
Loan renewal is allowed after full payment of the current microloan, as reported by the participating financial institution.
