The Social Security System (SSS) has announced lower interest rates for its salary and calamity loan programs.
In a statement, the SSS announced that the interest rate for salary loans will be reduced to eight percent, while the rate for calamity loans will drop to seven percent. Both currently stand at 10 percent.
The agency expressed its intention to implement the lower rates starting July, but clarified that this will only apply to members who have not availed of penalty condonation within the last five years — essentially, those with good credit standing.
Additionally, the SSS revealed plans to broaden its pension loan program to include surviving spouse pensioners. Under this program, the maximum loanable amount is set at P150,000. The loan will be covered by Credit Life Insurance, with the premium to be deducted from the loan proceeds.
This ensures that if the borrower passes away before fully repaying the loan, the remaining balance will be settled through the insurance coverage. The SSS said it aims to include surviving spouse pensioners in the pension loan program by September.
At the same time, the agency announced plans to introduce microloans for its members, with repayment terms ranging from 15 to 90 days.
“Currently, we are bringing the idea of a micro credit loan facility among our partner financial institutions through meetings and brainstorming sessions and see if we can address such short-term cash needs of our members,” said SSS president and CEO Robert Joseph de Claro.