How to Apply for the SSS Loan Restructuring Program

Published: August 10, 2018 | Updated: February 2, 2021 | Posted by: Venus Zoleta | Government Services

SSS Loan Restructuring Program |

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.

What is the SSS Loan Restructuring Program?

SSS Loan Restructuring Program |

Photo from SSS Facebook page

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.

Key Features of a Restructured SSS Loan

  • Pay only the loan principal and interest
  • Waived penalty
  • Lower annual interest rate of 3% (versus the 10% annual rate of the SSS Salary Loan)
  • Pay off the SSS loan in full or by monthly installments for up to five years

How the LRP Works

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 AmountNumber of Months to Pay
PHP 2,000 – PHP 18,00012
PHP 18,000.01 – PHP 36,00024
PHP 36,000.01 – PHP 54,00036
 PHP 54,000.01 – PHP 72,00048
More than PHP 72,00060

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Why Should You Apply for Loan Restructuring?

SSS Salary Loan |

Instagram photo by @cainmorales

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.

Who Can Avail of the SSS Loan Restructuring?

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:

  • Salary Loan
  • Salary Loan Early Renewal Program (SLERP)
  • Calamity Loan
  • Emergency Loan
  • Educational Loan
  • Study Now Pay Later Plan
  • Vocational/Technical Course Loan
  • Y2K Loan
  • Investments Incentive Loan

SSS member-borrowers also need to meet certain conditions to be eligible for loan restructuring:

  • Below 65 years old at the end of the repayment term
  • Lived or worked in a calamity-stricken area as of disaster date (such as areas affected by Yolanda in 2013 and Ondoy in 2009), as declared by the National Disaster Risk Reduction and Management Council (NDRRMC) or the national government
  • Have not been granted any final SSS benefit before the LRP period
  • Have not been approved for the first LRP implemented in April 2016 to April 2017

Read more: Quick Guide to SSS Calamity Loan Online

How to Apply for the SSS Loan Restructuring Program

SSS Loan Restructuring Application |

Facebook photo by Wherl Xv

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.

SSS Loan Restructuring Application Requirements

  • Any of the following valid IDs:
    – One primary valid ID (SSS ID, UMID card, passport, driver’s license, PRC card, or Seaman’s Book)
    – Two secondary valid IDs (company ID, Pag-IBIG Member Data Form, Marriage Certificate, PhilHealth ID, NBI Clearance, Police Clearance, Postal ID, Senior Citizen ID, etc.)
  • Two copies of the Statement of Loan Balances for Loan Restructuring Program
  • DDR Claim Application Acknowledgement Letter (for those with death, disability, or retirement claims only)
  • Accomplished SSS Loan Restructuring Application Form

Additional Requirements for Authorized Representatives

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:

  • One primary valid ID or two secondary valid IDs of the authorized representative
  • Scanned copy of the Letter of Authority (LOA) with signatures of the SSS member and authorized representative
  • Copy of the email request of the SSS member showing the email addresses of the sender and recipient

Steps to Applying for the SSS LRP

  1. Go to the nearest SSS branch and get two copies of your Statement of Loan Balances for Loan Restructuring Program.
  2. Fill out one copy of the SSS Loan Restructuring Application Form.
  3. Submit all the requirements to the nearest SSS office.

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.

Final Thoughts

Apply for the SSS Loan Restructuring Program as early as you can to avoid the long queues at the SSS branch, which can happen on the last day of LRP application on October 1.

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