The Philippine Social Security System has again implemented the Loan Structuring Program (LRP) from April 2 – October 1, 2018. Here’s a comprehensive article on how to Apply for SSS Loan Restructuring Program 2018.

Why do I need to aply for the SSS Loan Restructuring Program?

• • We received some feedback in the SSS Inquiries on why they have to pay for their SSS Loan, after all, it is their contributed SS Premium that they borrowed? That notion is wrong. When you borrowed money from SSS, you are actually borrowing from the SSS funds and not specifically borrowing the amount that you contributed.
  • When you did not pay for your SSS Loan, the full sum (including the accumulated penalties and interest) will be deducted to your SSS Retirement or Death Benefit. Just imagine, if you have a 10,000php loan in SSS, after 20 years it may become around 50,000+ and by the time that you really need money especially when you are already old and incapable of working, that will also be the unfortunate time that your loan will be deducted from your SSS Benefit. So it is better to settle your loans early so that it will no longer accrue interest and penalty and at the same time, you will enjoy the full sum of your benefits when your time comes.
  • After settling your Loan in SSS, you can again avail of their SSS Loan in the future.
  • If you aren’t convinced yet, you may also check our article, Why you should avail of the SSS Loan Condonation Program?

Related Articles:

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

Here is How to Apply for SSS Loan Restructuring Program 2018 or commonly known as SSS Loan Condonation

WHO ARE ELIGIBLE TO APPLY?

1. 1. All member-borrowers who have past due Calamity Loans or Salary Loan Early Renewal Program (SLERP);
   2. Member-borrowers with past due short-term loans living or working in calamity/disaster-stricken areas as declared by the National Disaster Risk Reduction and Management Council (NDRRMC) or in the case of Ondoy, by the National Government.
      Covered short-term loan programs are as follows:
      • Salary Loan
      • Emergency Loan
      • Educational Loan (old)
      • Study Now Pay Later Plan
      • Voc Tech Loans
      • Y2K Loans
      • Investments Incentive Loan

AVAILMENT PERIOD

April 2, 2018 – October 1, 2018 (Six months Period).

HOW TO APPLY

1. Secure updated Statement of Loan Balance for Loan Restructuring Program (2 copies) from the nearest submission of this form.
2. Accomplish an Affidavit of Residency attesting residence/work address in a covered calamity area when the calamity/disaster happened. Member-borrower with Calamity Loan or Salary Loan Early Renewal Program (SLERP) and Death Benefit filer need not accomplish an Affidavit of Residency.
3. Fill out the Loan Restructuring Application Form (MEL-01368)  in one copy.
4. If member-borrower is personally applying for the restructuring, present original copy of valid identification cards/documents.
5. If a representative is filling for the restructuring program, submit the following:
   1. Letter of Authority– original copy
   2. Photocopies of two (2) valid identification cards each of the member-borrower and the filer, at least one (1) with photo and both with signature. Present both original copies of the identification.
6. Submit the form to the nearest SSS branch or Foreign Office with the Statement of Loan Balance for Loan Restructuring Program signed in the “Conforme” portion and the notarized Affidavit of Residency (if applicable).
7. For the Death, Total Disability or Retirement (DDR) filer who will avail of the Loan Restructuring program, submit this Loan Restructuring Application form, Statement of Loan Balances for Loan Restructuring program together with the DDR claim application.

NECESSARY FORMS

Click link to open or download the form.

1. SSS Loan Restructuring Program – Application Form
2. Statement of Loan Balance (to be issued by the SSS Branch)
3. Affidavit of Residency
4. Letter of Authority (if filled by representative)

TERMS AND CONDITIONS

ELIGIBILITY

1. The loan/s must be past due for a period of at least six (6) months as of the first day of restructuring period.
2. The member-borrower:
3. Must be living or working in calamity/ disaster declared areas as of disaster date or as of application date. “Living” shall refer to the home address of the member-borrower (See Areas Covered);
4. Must be under 65 years old at the end of the installment term;
5. Has not been granted any final benefit, i.e. total permanent disability or retirement;
6. Has not been disqualified due to fraud committed against the SSS;
7. Member-borrowers with final benefits application (Death, Total Disability, Retirement) whose contingency date is on or before the last day of the availment period of the restructuring program. Said final benefit claim must be filed within the availment period.

AREAS COVERED

For covered short-term loan programs, below is the list of covered calamities or disasters declared by NDRRMC as under the state of calamity:

1. Ondoy (2009)
2. Sendong (2011)
3. Pedring and Quiel (2012)
4. Pablo (2012(
5. Labuyo (2013)
6. Maring (2013)
7. Santi (2013)
8. Armed Conflict in Zamboanga City (2013(
9. Earthquake in Bohol and Cebu (2013(
10. Yolanda (2013)
11. Agaton  (2013)
12. Glenda  (2014)
13. Mario (2014)
14. Ruby (2014)
15. Seniang (2015)
16. Lando (2015)
17. Nona (2015)
18. Lawin (2016)
19. Nina (2016)
20. Earthquake in Surigao del Norte (2017)
21. Earthquake in Leyte (2017)
22. Armed Conflict in Marawi City (2017)
23. Urduja/Vinta (2017)
24. Mayon Volcano Phreatic Eruption (2018)

RESTRUCTURED LOAN AMOUNT

The sum of principal and accrued interests of all past due short-term loans of the member-borrower shall be consolidated into one Restructured Loan (RL1).

PAYMENT TERM

1. Full payment – payable within 30 days from the approval date of restructuring application
2. Installment payment – payable in equal monthly amortization based on payment range as follows:

The member-borrower may elect his preferred payment term but not to exceed five years

INTEREST RATE AND PENALTY

1. For installment term, RL1 shall be subject to interest rate of 3% per annum computed on a diminishing principal balance over the applicable payment term.
2. A penalty of 0.5% shall be charged against the amortization due for every month unpaid during RL1 term.

DUE DATES AND MANNER OF PAYMENT

1. Monthly installment shall be due for payment every 10^th day of the month following the amortization month. Amortization shall start on the month immediately following the approval date of the Restructured Loan.

Example:

•  Restructured Loan Approval Month: APRIL
•  1^st amortization month: MAY
•  1^st installment amortization is due on JUNE 10

2. Payment shall be made through any SSS branch with tellering facilities or authorized collection agents of the SSS.

CONDITIONAL CONDONATION

Penalties shall be condoned after full payment of outstanding principal and interest of RL1 within the approved term. The balance of RL1 should be zero at the end of the term. Otherwise, the unpaid principal of RL1 and the proportionate balance of condonable penalty shall become part of a new principal under Restructured Loan 2 (RL2).

INTEREST RATE AFTER TERM EXPIRY

After the term of RL1 expires and the loan remains outstanding, the new principal balance under RL2 shall henceforth be charged with an interest rate of 10% per annum until fully paid

OTHER TERMS

1. While the Restructured Loan is existing or outstanding, the member-borrower cannot avail other SSS short-term loan programs including Educational Assistance Loan Program.
2. The member-borrower may avail of SSS short-term loan program after six (6) months from the date of full payment of the Restructured Loan.
3. Once the member-borrower availed of this loan restructuring program, he/ she is disqualified from availing of any future loan condonation/ restructuring programs of SSS.
4. In case of member-borrower’s death, total disability, or retirement, the total loan obligation or any unpaid amount of the loan as well as the interest and penalty shall be deducted from the final benefits.

Related Articles

• How to Create an SSS Online Account
• How to Check my Outsanding Loan balance Online

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