Pay Off Your Loan Easily: Your SSS Loan Restructuring Guide

Venus Zoleta

Venus Zoleta

Last updated August 11, 2023

If you have an SSS loan that hasn't been paid for quite a long time, this is your chance to settle it. The SSS Loan Restructuring Program is one of the debt relief schemes offered by the Social Security System to help members settle their unpaid loans without penalties.

This debt relief program is also to help members who have been affected by the pandemic. It covers SSS loans, such as salary loans and short-term member loans. 

Here’s everything you need to know about the SSS loan restructuring program for this year.

What is the SSS Loan Penalty Condonation Program?

The SSS Condonation Program, simply called Conso Loan, allows Filipinos with unpaid SSS loans to settle their outstanding balance under a restructured repayment term.

The SSS loan condonation program, which started on October 4, 2022, is officially known as the Consolidation of Past Due Short-Term Member Loans with Condonation of Penalty.[1]

This SSS loan restructuring program makes it easier to pay back what you owe. In this setup, the SSS combines the loan principal and the interest into one consolidated loan. On the other hand, the unpaid penalties will be consolidated and condoned once you fully pay the consolidated loan. 

Read more: Debt Consolidation in the Philippines: How to Settle Debts with a New Loan

How Does the SSS Loan Restructuring Program Work?

sss loan restructuring program - how loan penalty consolidation program works

With the current SSS Loan Restructuring Program, member-borrowers are given two payment options. Each scheme comes with conditions and benefits. 

Check out this table to learn more:


Payment Option One-Time Payment Installment term
How it works Pay the consolidated loan in full within 30 days after receiving the approved Consolidation Loan Program application.
  • Give a downpayment of the consolidated loan amount within 30 days from the receipt of the notice of approval of the Consolidated Loan Program application. 
  • A higher percentage of the consolidated loan may be considered a down payment. 
  • The remaining balance will be payable in equal monthly amortization.
Benefit A consolidated loan amount of up to ₱5,000 shall be settled on a one-time payment. 
  • Downpayment of at least 10% of the consolidated loan amount.
  • 10% interest rate per annum will be charged on a diminishing principal balance and shall be amortized over the approved term of the consolidated loan until fully paid. 
  • Late payment of the monthly amortization will have a penalty of 1% per month after the due date until fully paid.
Condition 100% of the consolidated penalties will be condoned once you fully pay the consolidated loan within the given payment period.
  • Penalty that’s proportionate to the downpayment percentage will be condoned once you fully pay the required downpayment within the approved period. 
  • The remaining penalty amount will be fully condoned after you fully pay the consolidated loan amount within the approved 



Under the SSS Conso Loan's installment plan, the remaining balance is payable in six to 60 monthly amortization based on the loan range below:


Consolidated Loan Remaining Balance Maximum Term
Above ₱5,000 to ₱10,000 6 months
₱10,001 to ₱18,000 12 months
₱18,001 to ₱36,000 24 months
₱36,001 to ₱54,000 36 months
₱54,001 to ₱72,000 48 months
More than ₱72,000 60 months



Why Should You Apply for the Loan Penalty Condonation?

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 loan through the SSS loan penalty condonation this 2023, take advantage of it to ensure you'll receive your final SSS benefits in full.

Availing of the SSS Condonation Program this 2023 also enables you to clear your loan records with the SSS. It will certainly help improve your credit score because of the reduced debt.

See also: Becoming Free of Debt: Why You Should Start Paying Your Debts Now




Who Can Avail of the SSS Loan Restructuring?

The SSS Loan Penalty Condonation Program is applicable to borrower-members who are currently paying off the following loans: 

  • Salary Loan, including the Salary Loan Early Renewal Program (SLERP) 
  • Calamity Loan
  • Emergency Loan
  • Restructured Loan 
  • Other short-term member loans as may be determined by the SSS

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

  • Have a loan account/s that is/are past due as of the time of the application for a consolidated loan
  • Have not been granted any final SSS benefits, such as permanent total disability or retirement
  • Have not been disqualified because of fraud against the SSS
  • Have an active My.SSS account

How to Apply for the SSS Loan Restructuring Program Online in 2023

All member-borrowers who want to apply for loan penalty condonation from SSS can only do it online. To apply, just follow the steps below:

  1. Have an active My.SSS account. If you still don't have one, register for an SSS account online.
  2. Log in to your My.SSS account.[2] Under “Loans,” click “Apply for Consolidation of Past Due Short-Term Member Loan with Condonation of Penalty Program.”
  3. On the next page, you’ll find your consolidated loan information and the qualified short-term member loans. Under “Preferred Conso Loan Payment Term,” choose your desired payment term. 
  4. Agree to the Conso Loan Program Terms and Conditions and click “Proceed.”
  5. On the next page, you’ll see the summary of your consolidated loan application. Once you’ve double-checked all the details, click, “Submit.”
  6. On the last page, you’ll get your Loan Account Number and Payment Reference Number (PRN).[2] A copy of the notice of approval will be sent to your email address. 

Read more:

SSS Loan Restructuring Program FAQs

Still got some questions on the SSS condonation program for 2023? Check out the following:

1. What is considered a past-due SSS loan?

According to the SSS, “past due” means that the loan has an unpaid obligation composed of the principal, interest, and penalties equal to more than three monthly amortizations. It may also mean that the loan has a remaining unpaid balance before it matures.

Did you miss the chance to avail of any past SSS loan penalty condonation programs like the PRRP 5 (Pandemic Relief and Restructuring Programs)? The SSS Conso Loan is an opportunity for your to settle your unpaid SSS loan this 2023. Watch the video below for more details.


2. How much is the interest rate of the SSS Consolidated Loan?

The loan under the SSS loan penalty condonation program is charged a 10% interest rate on a diminishing principal balance. This is amortized over the consolidated loan term until it's paid off.

Also, take note that late payment of your monthly amortization will incur a penalty of 1% per month after the due date until fully paid.

sss loan restructuring program - interest rate and late payment penalty

3. How to pay my SSS loan condonation account?

You can pay your SSS consolidated loan over the counter at the following payment partners: 

  • RCBC
  • Security Bank
  • Union Bank of the Philippines
  • Bayad

For convenience, you may choose to pay your consolidated loan via popular online payment platforms, such as GCash, Maya, and UnionBank mobile app.

Download the UnionBank Online App!

The UnionBank Online Banking app is available on the App Store, Google Play, and Huawei App Gallery. You can download it via the links below:

4. What will happen if I miss my due date? Will there be a penalty?

If you choose installment payment for your restructured loan and you miss the due date, you’ll be charged a penalty of one 1% per month after the due date until fully paid. 

5. What are the grounds for loan default?  

Your consolidated loan shall be in default if it meets any of the following criteria: 

  • You fail to pay in full the agreed one-time payment or downpayment within the approved period. 
  • You fail to pay your obligation equivalent to more than six accumulated monthly amortizations. 
  • You fail to pay in full the installment plan within the approved term. 
  • You commit any fraudulent acts or violations against any guidelines and regulations of the SSS. 

If you want to avoid loan default, you can apply for a low-interest personal loan from Metrobank and use the proceeds to completely settle your SSS loan.

The Metrobank Personal Loan’s monthly add on-rate is as low as 1.25%. You can borrow any amount from ₱20,000 to ₱1 million and pay in 12, 18, 24, or 36 monthly installments. 

6. What will happen if I default on my consolidated loan? 

In case of loan default, the outstanding balance of the consolidated loan will be collected from you through the deduction of any benefit due to you or your beneficiaries. Affected benefits include short-term benefits (sickness, partial disability, and maternity) and final benefits (retirement, total disability, and death). 

Keep in mind that your unpaid balance will continue to accrue interest and penalties until you fully settle it. 

Read more:

7. Can I apply again if I defaulted on my consolidated loan? 

Yes! In case of loan default, you can apply again for the SSS restructuring program. That way, you’ll be able to enjoy a penalty waiver. If you apply, the SSS will close your defaulted account and then set up a new consolidated loan account.  

8. Can I apply for a new SSS Conso Loan? 

The SSS will allow you to apply for a new loan program after three months from the date of full payment of your consolidated loan. In case you have defaulted on your loan, you’ll be allowed to apply for a new loan after two years from the date of full payment of your defaulted consolidated loan. 

Final Thoughts

The SSS Loan Restructuring Program is a relief provided to member-borrowers who have been having trouble settling their obligation. This program will help you fix your delinquent status with the SSS and make it easier to apply for other SSS benefits again in the future. In case you falter after your consolidated loan application, you’re given a chance to apply again.

Although the repayment terms may still be a challenge for some members, prioritize paying your SSS loan, so you can enjoy your benefits in full and easily make a claim when the need arises.

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Venus has almost 20 years of combined experience in content marketing, SEO, corporate communications, and public relations. Most of her career was spent creating informative articles on personal finance and digital marketing. She also invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. Venus graduated cum laude with a Journalism degree from the University of the Philippines Diliman. A hardcore Hallyu Tita, she loves bingeing Korean shows on Netflix while bonding with her cats. Follow Venus on LinkedIn.


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