Pension Loan Program disbursement reaches P100M mark

The state-run Social Security System (SSS) has reached the P100 million mark in pension loan disbursement with just one month of implementation of the Pension Loan Program (PLP).

SSS President and Chief Executive Officer Emmanuel F. Dooc said he was overwhelmed that the pension fund was able to help 4,341 pensioners with their short-term financial needs with pension loan disbursements reaching P107.77 million as of October 03.

“It is really overwhelming that we were able to help our dear pensioners thru this program. We hope that as soon as all our branches are ready to accept PLP applications, there will be higher number of pensioners who will avail of the program,” Dooc said.

Among the 70 branches receiving PLP applications, Diliman branch has the most number of approved PLP applications at 696, with P17.87 million in pension loan releases.

Also included in the list of top five branches with the most number of PLP releases were Cebu branch with 360 approved applications and P8.99 million disbursement, Bacolod branch with 350 approved application sand P7.26 million disbursement, Bacoor and Zamboanga branches with  227 and 220 approved applications and P5.88 million and P4.99 million loan releases, respectively.

“In line with the celebration of Elderly Filipino Week, we would like to announce that more pensioners will have the privilege to avail of the PLP as all 170 branches of the SSS will be receiving PLP applications starting October 8,” Dooc said.

“We would like our pensioners to know that the SSS is always here to help and assist them. They had spent a large amount of time of their lives working and dedicatedly contributed a portion of their monthly salary to the SSS,” Dooc added.

SSS launched the PLP on September 3 in line with the pension fund’s 61st anniversary. The program is an answer to the clamor from senior citizens to put an end to the growing incidence of pensioners falling victims to loan institutions that offer steep interest rates and to help them with their short-term needs like emergency medical expenses.

Retiree pensioners who are 80 years old and below at the end of the month of loan term with no outstanding loan balance and benefit overpayment payable to SSS; who have no advance pension under the SSS Calamity Package; and have been receiving his regular monthly pension for at least six months are qualified to avail the program.

Minimum loan amount for qualified pensioners is twice the amount equivalent to his basic monthly pension while the maximum loanable amount is six times his basic monthly pension plus the additional P1,000 benefit but not exceeding P32,000.

The loan will incur an interest rate of 10 percent per annum until fully paid computed on a diminishing principal balance, which shall become part of the monthly amortization. The loan repayment term of the loanable amount will be payable in three, six, or 12 months depending on the multiple of their loan amount and will be deducted from the monthly pension of the borrower.

The first monthly amortization will be due on the second month after the loan was granted. For example, if the loan is granted in September, the first monthly amortization will be deducted from the monthly pension for the month of November.

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