August 10, 2018 | Posted by: Venus Zoleta | Government Services
August 10, 2018
Got an SSS loan you haven’t paid for years? Consider applying for the SSS Loan Restructuring Program—this can definitely help you settle your overdue loan.
Here’s everything you need to know about SSS loan restructuring in the Philippines.
The Loan Restructuring Program (LRP) allows Filipinos with unpaid SSS loans to settle their outstanding balance under a restructured repayment term. Qualified SSS members can avail of the program until October 1, 2018.
Loan restructuring makes it easier to pay back what you owe to the SSS. You’ll have to pay only the overdue principal amount plus interest. After completing the repayment for the restructured loan, you’ll no longer pay the penalty fee you’ve accumulated after years of non-payment.
When you’re approved for loan restructuring, all your overdue loans with the SSS will be consolidated into one restructured loan. You can pay either in full or by monthly installments, depending on your ability to pay. Payments are accepted at SSS branches and authorized collection agents.
If you choose the full payment scheme, you’ll have to pay off your SSS loan within 30 days from your LRP approval date.
On the other hand, the installment scheme involves repaying your SSS loan over a certain number of months based on your restructured loan amount. Amortizations are due every 10th of the month.
|Restructured SSS Loan Amount||Number of Months to Pay|
|PHP 2,000 – PHP 18,000||12|
|PHP 18,000.01 – PHP 36,000||24|
|PHP 36,000.01 – PHP 54,000||36|
|PHP 54,000.01 – PHP 72,000||48|
|More than PHP 72,000||60|
Any unpaid SSS loan will be deducted from your retirement, death, or disability benefits. The deduction will be huge if you’ve stopped making loan payments for many years. So while there’s a chance to settle your SSS loan through a restructuring program, take advantage of it to ensure you’ll receive your final SSS benefits in full.
Availing of the LRP also enables you to clear your loan records with the SSS. It will certainly help improve your credit score because of the reduced debt.
Qualified for loan restructuring are borrowers with an SSS loan availed from 2009 to 2017 that has been overdue for at least six months as of April 2, 2018. The LRP covers the following short-term SSS loans:
SSS member-borrowers also need to meet certain conditions to be eligible for loan restructuring:
All SSS branches in the Philippines have been accepting loan restructuring applications since April 2. The deadline for filing LRP applications is October 1, 2018.
OFW members who cannot personally apply for LRP can assign a representative to file the application on their behalf. In addition to the requirements listed above, authorized representatives also need to submit the following documents:
Once the SSS approves your LRP application, it will issue a Notice of Approval of the Loan Restructuring Application. You can then start repaying your restructured SSS loan based on the agreed term.