Bes, May Overdue Loan Ka Ba Sa SSS? You Can Now Avail of Penalty Condonation!

Due to insistent public demand, the Social Security System is again offering a loan restructuring program (LRP) with penalty condonation that will run for six months only, from April 2 to October 1, 2018. It is expected to benefit more than 250,000 SSS members. LRP was last offered in April 2016 to April 2017.


Application forms will be accepted in all of the 256 branches and service offices of SSS. You can download the application form here: SSS Loan Restructuring Application Form. 

So, what are the benefits from the LRP?

The LRP allows SSS member-borrowers to settle their overdue loan principal and interest in full or by installment under a restructured term depending on their capacity to pay. For both payment schemes, SSS will waive all the loan penalties after the member has completed paying the restructured loan.

The program covers all member-borrowers who have past due loans like the Salary Loan, Emergency Loan, Educational Loan (old), Study Now Pay Later Plan, Voc-Tech Loans, Y2K Loans and Investments Incentive Loan. Those who have previously availed of LRP are no longer qualified.

Why is it important to pay your overdue loans?

So you can avail of your full SSS benefits when the need arises such as during disasters or disability or upon retirement, without any deductions due to penalties.

To convince you further of how helpful and how much one can save from loan condonation, check out this example from SSSanswers.com:

“A Salary Loan amounting to PhP20,000 in 2005 that has not been paid ever since has ballooned to PhP67,528.78 after 11 years. To break it down, PhP18,485.58 was the principal loan or the net amount that the SSS member received when she took out the loan; PhP17,499.84 was the total loan interest in 11 years (at an interest of 10% per year); and P31,543.36 was the total amount of penalty for not paying the loan in 11 years. When the SSS member applied for Loan Restructuring Program (LRP), her loan balance went down from PhP67,528.78 to PhP35,985.42. The penalty of PhP31,543.36 was deducted from the outstanding loan because of LRP.”

SSS members cannot avoid paying their loans anyway, so might as well pay now with better restructured terms, right?

What do you think about this? Write your thoughts in the comments!