The Social Security System announced the condonation of penalties of members with past-due loans to help them regain their good standing with the SSS and once again avail of SSS loans.
Executive Vice President for Investments Sector Rizaldy T. Capulong urged members with unpaid short-term member loans to avail of the Consolidation of Past Due Short-Term Member Loans with Condonation of Penalty (Conso Loan), where SSS will waive the penalties of their unpaid loans.
Under the Conso Loan program, Capulong said SSS will combine the principal and interest of a member’s past-due short-term member loans into one loan while all unpaid penalties shall be consolidated and condoned or waived upon full payment of the consolidated loan.
Capulong said members with outstanding loan obligations in their salary, calamity, emergency, and restructured loans, including the Salary Loan Early Renewal Program (SLERP), are qualified to avail of the program.
He added interested members must meet the following requirements to qualify for the program: have a past-due short-term member loan at the time of their application; have not been granted any final benefit such as permanent total disability or retirement; have not been disqualified due to fraud committed against the SSS; and have an active My.SSS account.
“Members may pay their consolidated loan through a one-time payment within 30 calendar days after receiving the approval notice, or they may also opt to pay through installment,” he said.
For the installment scheme, Capulong said members must pay a down payment equivalent to at least 10 percent of the consolidated loan within 30 calendar days after receiving the approval notice.
They can pay the balance for up to 60 months, where the length of the installment term depends on the amount of the unpaid loan.
However, he said if the member fails to meet the payment terms based on the consolidated loan agreement, SSS will deduct the outstanding balance of the consolidated loan from the short-term benefits (sickness, maternity, or partial disability benefit claims) and final benefits (permanent total disability, death, retirement), as authorized by the Social Security Commission.
He added the outstanding balance of the consolidated loan can also be deducted from the death benefit of the members’ beneficiaries or deducted from the actual final benefit claims. – Press release
