With the loan penalty condonation deadline on April 27, the Social Security System (SSS) is encouraging all members with short-term loan delinquencies to avail of the Loan Restructuring Program (LRP) which offers affordable payment terms and conditional condonation of loan penalties.
SSS President and Chief Executive Officer Emmanuel F. Dooc said that a total of 487,278 members have benefited from LRP which has an equivalent collection of P2.89 billion as of February this year.
“Employed member payments amounting to P1.78 billion constitute for about 61 percent of the entire LRP collection while voluntary member payments worth P766.35 million represent 27 percent of the overall total. It only shows that the special program is highly recognized by member-borrowers as reflected on the collection performance,” Dooc said.
More than 22,000 self-employed members also availed of the LRP with an equivalent collection of P105.65 million. Meanwhile, nearly 30,000 OFW-members benefitted from the program with a total remittance of P234.91 million. In terms of geographical location, the National Capital Region (NCR) processed the highest number of LRP applications with 226,776 followed by Luzon, Visayas and Mindanao area with 141,224 applications, 52,498 applications and 49,126 applications respectively; while the foreign offices processed 17,654 applications.
SSS local branches that received the largest volume of LRP transactions as of end-January 2017 were Diliman, Davao, Calamba, Biñan and Bacoor. Meanwhile, foreign offices that facilitated the highest number of LRP applications were Hongkong, Riyadh and Dubai, where huge number of OFWs are located. Member-borrowers can still avail of the LRP until April 27 to provide financial relief to borrowers affected by natural calamities and disasters who struggle to pay their short-term SSS loans.
“We would like to remind other delinquent borrowers to apply for LRP before the prescribed deadline to avoid hassle from last-minute filing as well as to conveniently settle their financial obligations to SSS. If they failed to avail the LRP, the loan interest and penalty will continue to increase every month,” Dooc concluded.
To qualify for the LRP, the member should be residing or employed in any of the calamity areas declared by the National Disaster Risk Reduction and Management Council (NDRRMC) or the national government. The short-term loan must also be overdue for at least six months as of April 28, 2016.
Members can pay their overdue loan in full within 30 days with no additional interest, or apply for an installment payment term of up to five years with a minimal annual interest rate of three percent. (SSS/RJB/SDL/PIA-NCR)