SSS urges members with delinquent loans to restructure, scrap penalties

• Source: http://punto.com.ph/News/Article/29379/Volume-11-No-59/Headlines/SSS-urges-members-with-delinquent-loans-to-restructure-scrap-penalties
• Thursday, May 3, 2018

By Ding Cervantes

CLARK FREEPORT -- The Social Security System (SSS) is offering another round of loan structuring starting April 2 to members with unpaid obligations, especially those affected by the recent calamities and natural disasters.

At the Talk Widus forum of the Pampanga Press Club held at the Widus Hotel and Casino here, SSS Luzon Central Division head GloriaCorazon Andrada said this second round of loan structuring program that will end on Oct. 1 is a follow through of the first one offered from April 2016 to April 2017. The SSS collected about P6 billion from over 800,000 members in this first round.

Andrada explained that this round of loan restructuring program that condones penalties of borrowers with past-due loans is a response to the widespread clamor of those members who were not able to avail themselves of the [previous] program.

She estimated that some P2.7 billion worth of unpaid loan penalties are to be condoned by the SSS for loan restructuring.

For this year’s loan structuring, the SSS expects to generate P1.2 billion from about 250,000 member-borrowers in the next six months.

Under the program, members could settle their overdue loan principal and interest in full or by installment under a restructured term depending on their capacity, Andrada said.

She said that for both schemes, the SSS will waive all the loan penalties after the member has completed paying the restructured loan, adding that the program covers all member-borrowers who have past due loans like the salary loan, emergency loan, (old) educational loan, study now pay later plan, voc-tech loans, Y2K loans, and investments incentive loan.

Loans that were past due for at least six months as of April 2 are qualified under the program and would be covered by more affordable amortization interest rate of 3 percent.

Penalties will be condoned upon full payment, while also allowing loan renewal after six months.

Andrada stressed, however, that the SSS will only allow a one-time condonation availment, such that members cannot undergo another condonation or restructuring program in the future.