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SSS issues guidelines for calamity loan

State-run Social Security System (SSS) issued its guidelines on calamity assistance for members and pensioners affected by typhoons “Quinta,” “Rolly,” and “Ulysses” that ravaged Luzon and parts of the Visayas.

In a statement, Aurora C. Ignacio, SSS president and chief executive, said the pension fund will open three calamity assistance programs starting November 27 this year to provide financial assistance for typhoon-affected members and pensioners.

These programs are the Calamity Loan Assistance Program (CLAP) for qualified members and Three-month Advance Pension for SS and Employees’ Compensation (EC) pensioners, which will accept applications until February 26 2021.

Also, SSS will offer a Direct House Repair and Improvement Loan for qualified members, which will accept applications for the next 12-months.

The assistance packages are open to SSS members and pensioners in areas that are declared and will be declared under the State of Calamity by the National Disaster Risk Reduction and Management Council (NDRRMC) due to typhoons “Rolly,” “Quinta” and “Ulysses.”

Under the CLAP, qualified members may avail of a loan equivalent to the average of their last 12 monthly salary credits (MSC) rounded up to the nearest thousand or the amount they applied for, whichever is lower.  

The calamity loan is payable within two years with a 10 percent interest rate per annum and a one percent penalty for late payments. The service fee of one percent is waived.

Meanwhile, SS and EC pensioners residing in NDRRMC-declared calamity areas due to Super Typhoon Rolly and Typhoons Quinta and Ulysses may apply for the Three-month Advance Pension.

However, retiree-pensioners who have existing loans under the Pension Loan Program (PLP) are not qualified for the advance pension.

Lastly, employed, self-employed, voluntary, and Overseas Filipino Worker members whose residence was affected by the typhoons may apply for a Direct House Repair and Improvement Loan.

Under the program, they may avail of a loan of up to P1 million.

To qualify, the member must have at least 24 monthly contributions, three of which posted within the last 12 months before the month of application; and not more than 60 years old at the time of application.

The applicants must also not been previously granted a Direct House Repair and Improvement Loan.

The SSS has waived the processing fee for the said loan program. It has an annual interest rate of eight percent for loans of up to P450,000 and nine percent for loans over P450,000.

Payment terms for the loan program must be a multiple of five years with a maximum of 20 years, plus a six-month moratorium.

As of writing, NDRRMC-declared State of Calamity over the Provinces of Cavite, Catanduanes, Camarines Sur, Batangas, Oriental Mindoro, Occidental Mindoro, Marinduque, and Albay; and the municipalities of Mulanay in Quezon; Culion in Palawan; Banton, Concepcion, and Corcuera, in Romblon; and Asipulo in Ifugao. 

   

Source: Manila Bulletin (https://mb.com.ph/2020/11/16/sss-issues-guidelines-for-calamity-loan/?utm_source=rss&utm_medium=rss&utm_campaign=sss-issues-guidelines-for-calamity-loan)

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