SSS disburses P26.3-B salary loan to members in 1st 8 months of 2019

Over a million members of the Social Security System (SSS) benefited from a total of P26.3 billion in salary loans from January to August this year, the state-run pension fund said Wednesday.

The amount was 10.2% higher than the P23.9 billion released in the same period last year.

“From 2014 to 2018, we have recorded a yearly average increase of 7.3 percent in the amount of salary loan releases and 6.9 percent in the number of borrowers,” SSS President and CEO Aurora Ignacio said in a statement.

Employed members have taken the lion's share of this year's  salary loan disbursements as the P24.5 billion went to 1.16 million of them.

Over a hundred thousand voluntary members also received P1.5 billion; P233 million went to more than 12,000 overseas Filipino workers; and P109.7 million were disbursed to over 13,000 self-employed members.

SSS members may apply for a salary loan worth up to twice the average of their 12 latest posted monthly salary credits.

A salary loan is payable in two years in the form of 24 monthly installments. It comes with an interest rate of 10% per anum based on its diminishing principal balance.

To qualify, the member must be below 65 years of age at the time of the loan application.

Those who have already been granted final benefit for permanent disability, retirement or death cannot apply for salary loans, according to the SSS.

Thirty-six posted monthly contributions—six of which within the last 12 months prior to the month of application—are required for the one-month salary loan.

A member applying for a two-month salary loan, on the other hand, must have at least 72 posted monthly contributions—six of which should also be within the last 12 months prior to the month of application.

According to SSS, salary loan applications must be submitted online through My.SSS facility in its website or through the SSS mobile application.

Last November 11, the SSS enforced the "no web registration, no salary loan" policy. —Dona Magsino/LBG, GMA News