SSS now has more flexible loan guidelines
HIGHER salary loan amounts and more flexible terms are now in effect under the Social Security System’s (SSS) revised lending guidelines that took effect December 1, 2012.
SSS President and Chief Executive Officer Emilio de Quiros, Jr. said the new guidelines aim to align the SSS salary loan program with prevailing market conditions.
“The SSS relaxed its lending terms and conditions that result in a higher maximum loanable amount, bigger net loan proceeds, lower computation of interest payments and earlier loan renewals for members,” De Quiros said.
Under the new salary loan guidelines, members can file for renewal if they have already paid at least 50 percent of the principal loan amount and at least half of the two-year loan term has lapsed.
De Quiros said that while loanable amount remains based on the average of the members’ latest 12 posted monthly salary credits (MSC), the new guidelines provide a maximum salary loan of P30,000, higher than SSS’ previous cap of P24,000.
“Members paying at the current P15,000 maximum MSC become entitled to the full amount of a two-month salary loan, which is now P30,000. As added flexibility, members can indicate how much they want to borrow as long as it is within their loanable amount,” he added.
The loan will be amortized over a 24-month period and the 10 percent annual loan interest will apply to the diminishing principal balance. Moreover, the first year’s 10 percent interest will no longer be deducted in advance, which translates to bigger net loan proceeds.
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