SSS to reduce calamity loan interest rates

MANILA, July 24 ------ The Social Security System is looking to reduce the interest rate it charges for calamity loans. In a statement, SSS said it will be issuing the revised Calamity Loan Program (CLP) guidelines aimed at helping members in areas declared under State of Calamity (SOC) due to various natural disasters.

The state-led pension fund said calamity loans will soon have a 7 percent per annum interest rate, down from 10 percent at present. "This follows the reduction of interest rate for salary loans to 8 percent per annum from the previous 10 percent, which was implemented last month,” said SSS President and CEO Robert Joseph De Claro.

This lower interest rate can be availed by SSS members with good credit records, or those who have not been subject to penalties for the last 5 years, SSS said. Calamity loans may also be renewed after six months. De Claro said they also plan to streamline the activation process for calamity loans, and shorten it to 7 days from the calamity event from about one month at present. “SSS Branch Operations Sector and International Operations Group units will have a more active role in the activation process when they endorse State of Calamity declarations to the SSS Member Loans Department within two (2) calendar days from date of issuance,” De Claro added.

SSS Calamity Loans are equivalent to a member's monthly salary, and is capped at P20,000. Fund members can apply up to 30 calendar days on the date of announcement of the availability of the calamity loan.

Source: news.abs-cbn.com