MANILA, Philippines — Members of the Social Security System (SSS), especially those with at least 12 posted monthly contributions, have been urged to apply on its digital microloan facility - the Micro Loan Program - also known as SSS LoanLite.
SSS president and CEO Robert Joseph de Claro said on Saturday that SSS LoanLite was designed to give qualified members accessible, secure, and affordable short-term financial assistance for immediate needs.
Qualified members may borrow between P1,000 and P20,000, depending on the average of their 12 latest Monthly Salary Credits (MSCs), de Claro said.
"Available repayment periods are 15, 30, 60, or 90 days, with an interest rate of 8 percent per annum, equivalent to approximately 0.67 percent per month," he said.
To qualify for SSS LoanLite, employed, self-employed, voluntary, and Overseas Filipino Workers members must meet the other requirements, the state pension fund said.
A member must have no past-due short-term member loan, no pending or settled final benefit claim, no active restructured loan and his/her account must be enrolled in the online facility of a participating financial institution, among others.
De Claro noted that while 12 contributions were sufficient to qualify for SSS LoanLite, members with at least 36 total contributions—including at least six posted within the 12 months immediately preceding the application—may access higher loan amounts up to the P20,000 ceiling.
Members with at least 12 monthly contributions may borrow an amount equivalent to 11 percent of their average MSCs over the last 12 months.
"For example, if a member's average MSC over the last 12 months is P20,000 but the member has only 12 total contributions, the loanable amount is P2,200, or 11 percent of P20,000," he explained.
Members with at least 36 total contributions, including at least six posted monthly contributions within the 12-month period immediately preceding the application, may qualify for the maximum loan amount of up to P20,000, depending on their average MSC.
In addition, the SSS chief executive said that members with existing short-term member loans (salary, calamity, or emergency loans) may still apply for SSS LoanLite, provided those loans are not past due and they have no active SSS Micro Loan.
Loan repayments will be collected according to the agreed schedule through an automatic debit arrangement, the default collection mode, the agency said.
Deductions will be made primarily from the account where the loan proceeds were credited, it added.
De Claro said SSS LoanLite is currently available through the UnionDigital Bank mobile application.
The SSS is also coordinating with Rizal Commercial Banking Corporation, Land Bank of the Philippines and Union Bank of the Philippines to make LoanLite accessible through their respective digital platforms, according to the SSS chief.
