The Social Security System (SSS) announced revised guidelines for its Calamity Loan Program (CLP), lowering the interest rate to 7% per year, allowing renewal after six months, and streamlining the activation process to provide faster aid to members in areas under a State of Calamity.
In a statement posted on its website, SSS said the move aims to help members affected by natural disasters, such as Tropical Storm Crising, which recently hit parts of the Philippines.
“On the reduction of interest rates for salary and calamity loans, we proposed and obtained approval of the Social Security Commission to reduce interest rates for calamity loans to 7% per annum from the current rate of 10 percent,” said Robert Joseph De Claro, president and CEO of SSS.
De Claro noted that the reduced rate applies to members with good credit records. The program also now allows members to renew a calamity loan after six months, as long as the existing loan is not past due.
He added that SSS streamlined the activation of the CLP to seven working days after a calamity is declared, faster than the previous month-long process.
“SSS Branch Operations Sector and International Operations Group units will have a more active role in the activation process when they endorse State of Calamity declarations to the SSS Member Loans Department within two calendar days from date of issuance,” De Claro said.
The revised CLP allows members to borrow up to one month’s salary credit, capped at ₱20,000, with a repayment term of two years in 24 equal monthly payments. A 1% service fee applies, and overdue payments incur a 1% monthly penalty.
Members must meet eligibility requirements, such as having at least 36 monthly contributions, an active My.SSS account, and no past due loans. Applications can be filed online through the SSS website or mobile app, with loan proceeds released through an enrolled bank account or UMID ATM card.
“With the issuance of the revised CLP guidelines, SSS will provide emergency financial relief to mitigate the impact of natural disasters to members and help get them toward the path of recovery under liberalized terms and conditions,” De Claro said.
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