When the SSS offers a Loan Condonation Program and you have an existing or past due loan with the SSS, you should take advantage of it. If you have a loan in SSS that have been unpaid for a long time, it is sure that it has accumulated a huge amount of penalty. There is one SSS Inquiries Facebook member, let’s name him Leo..

I applied for SSS Salary Loan amounting to ten thousand pesos (Php 10,000) back in year 2000. I didn’t pay a single cent on it since I timed the application of my salary loan a month before my contract ends on the company that I was working in. I didn’t reported the loan on my next employer because I do not want them to deduct the payment from my salary. Come 2016, a year before I reach 60, my retirement age  and sixteen years after my loan, the sum of my loan became Php 60,000. I was really shocked! The amount of my loan multiplied to six times due to the incurred penalty and interest. Buti na lang may Loan Condonation that time. The 60,000 amount of my loan was cut down to around 20,000+ due to the waived penalties. I was able to clear my obligations to SSS before my retirement and was able to get the full sum of my retirement benefit without any deduction.

SSS has already announced that this April 2- October 1, 2018, SSS will once again have a Loan Restructuring Program also known as Loan Condonation.

Disclaimer: The computation provided from the SSS Loan Condonation program last 2016 may become different from the SSS Loan Condonation 2018. The amount or the percentage of the waived amount from our example above maybe different on the actual computation that will be provided by SSS to you based on your record.

Related Articles:

• How to check SSS outstanding loan balance online
• How to apply for SSS Salary Loan

Why should you take advantage of the SSS Loan Condonation Program?

1. If you have a long overdue SSS Loan, the SSS Loan Condonation is your chance to pay!
   From the experience of Leo, our example above, his SSS Salary loan from Php10,000 way back year 2000 became Php60,000 after 16 years. Leo supposedly has to pay for 400+ pesos only for only 24 months to pay the full amount of his Salary loan. Now, if Leo will pay for the whole amount of 60,000 starting today, even if he pay for 500php per month, it will take him 120 months or 5 years to pay for the whole 60,000. But by the time that he paid the 60,000, his loan will still not be fully paid because his loan continues to compound on penalty and interest every day.
2. The accumulation of Penalties and Interest on your outstanding Loan will stop.
   When you applied for a Loan Restructuring Program, your existing loan will no longer incur penalties and interest. It will only accrue interest and penalty when you did not pay the agreed amount and schedule of payment of your restructured loan.
3. Penalties will be waived and the amount of obligation will become smaller.
   From the shared story of Leo,his Salary loan that is 10,000 became 60,000 after 16 years. After applying for SSS Loan Condonation Program, the amount of obligation became around 20,000, and the 40,000 are all waived penalties. This means that Leo has to  pay only the amount of Php20,000 under the Loan Restructuring Program instead of the original 60,000.
4. If you are retiring soon, this is your last chance to settle outstanding obligations so that it will not be deducted on your SSS Retirement benefit.
   Any outstanding obligation or loan in SSS will be deducted from the retirement benefit that you will receive from SSS. Leo shared that he received Php5,000 every month as his monthly pension starting his 60th birthday. If Leo did not applied for a Loan Condonation program and did not settle his obligation from SSS, he will not receive his first 12 months pension because SSS will automatically deduct the full amount of his loan from his SSS Pension.
5.  After paying your loan, you can again avail SSS Loan program offered by the SSS
6. Also, the SSS Loan Condonation Program is not being offered by the SSS regularly. Apply early and do not wait anymore for the deadline.