SSS microloan program aims to steer members away from loan sharks

Finance Secretary and Social Security Commission chairman Frederick Go on Friday said the planned Social Security System (SSS) microloan program was aimed at expanding safe, affordable, and convenient access to short-term credit for its members. 

Late last month, the SSS announced its plan to roll out a microloan program along with raising pensions again in September as part of its three-phase pension reform. 

Go said the initiative aligns with the directive of President Ferdinand Marcos, Jr. to protect Filipinos from high-cost informal lending, while providing timely financial support for urgent needs.

“Through the proposed SSS Micro-Loan Program, we are addressing the immediate cash needs of members by offering small, short-term loans at reasonable rates and with flexible repayment options,” the Finance chief said.

“This program will help steer members away from loan sharks and other high-cost, predatory lending schemes, while promoting responsible borrowing,” he added.

Under the proposed framework, the SSS will partner with participating banks and financial institutions to deliver the program through their digital platforms. 

Among the key features of the proposed program will include loan amounts ranging from P1,000 to P20,000, depending on a member’s average monthly salary credit; flexible repayment terms from 15 to 90 days; and an interest rate of 8% per annum or 0.67% per month.

The program will be open to eligible SSS members aged 18 to under 65 years old, with at least 12 paid monthly contributions, and have no pending or settled retirement, total disability, or death benefit claims. 

Members with existing SSS loans may still qualify, subject to program limits.

The SSS is currently finalizing the program guidelines, systems integration, and partnerships with participating banks, with a pilot rollout targeted in the first half of 2026.

"This micro-loan program reflects our continued commitment to strengthening social protection and advancing financial inclusion for all Filipinos," Go said. —VAL, GMA Integrated News