SSS offers pensioner loans up to P200-k during Elderly Filipino Week

In celebration of Elderly Filipino Week, more than 1.5 million retiree-pensioners may avail of loans up to P200,000 under the enhanced Pension Loan Program (PLP), the Social Security System announced on Friday.

“They can now borrow up to 12 times their basic monthly pension plus the additional P1,000 benefit. SSS branches are now accepting PLP applications from qualified retiree-pensioners,” SSS President and Chief Executive Officer Aurora Ignacio said in a statement.

Qualified under the new guidelines are retired pensioners who were 85 years old and below who have no outstanding loan balance at the end of the loan repayment term or benefit overpayment payable to the SSS from their monthly pension.

Pensioners must also have no existing advance pension under the SSS calamity package, must have received a regular monthly pension for at least one month, and have an "active" pension status.

“We want our pensioners to know that we value them as one of our key stakeholders in recognition of their support to SSS during their prime, wherein their monthly contributions were the lifeline of the pension fund then,” Ignacio said.

Loan borrowers would have a wider option to choose from their loanable amount.

From the previous minimum loanable amount of twice their basic monthly pension (BMP) plus the P1,000 in additional benefits, the pensioner borrower may now borrow up to three times, six times, nine times or 12 times their BMP plus the P1,000 additional benefit.

Borrowers may also choose to pay their loan in six, 12, or 24 months with the first monthly amortization to be paid in the second month after the loan is given.

PLP was implemented in September 2018 to prevent senior citizens from falling victim to loan sharks and to help them with their short-term needs.

The SSS had released 59,224 pension loans amounting to P1.4 billion as of September 30, 2019.

According to SSS data, 0.8 percent of the pensioner-borrowers preferred the three-month term, 5.88 percent preferred six months, and 93.32 percent for 12 months as of end-September 2019. — Joahna Lei Casilao/DVM, GMA News