SSS Loan – Condonation Program and Loan Restructuring Program (LRP)


Good news to all SSS (Social Security System) members who happen to have existing SSS Loans which has not been paid for over a year.  The SSS launched the SSS Loan Restructuring Program (LRP) for SSS members with past due accounts.  These loans include:

  • Calamity Loan
  • Salary Loan Early Renewal Program (SLERP)
  • Salary Loan
  • Emergency Loan
  • Educational Loan (old)
  • Study Now Pay Later Plan
  • Vocational / Technical Course Loans
  • Y2K Loans
  • Investments Incentive Loan

The following bullets describe the coverage for the Loan Restructuring Program:

  • All members with past due Calamity Loans or Salary Loan Early Renewal Program (SLERP)
  • Members-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
    • Study Now Pay Later Plan
    • Voc Tech Loans
    • Y2K Loans
    • Investments Incentive Loan

Updates: SSS returned the Loan Restructuring program from April 2, 2018 to October 1, 2018.

Recently, SSS announced that LRP with penalty condonation was extended for another six months or until April 1, 2019

The main objective of this program is to help relieve the burden of calamity-stricken workers, who face the difficulties in paying SSS loan after being affected by the various calamities that have devastated some parts of the country. The outstanding short-term loan must be past due for a period of at least 6 months of the first day of the restructuring period.

Am I eligible for this Loan Restructuring Program?

You might think that all people who have outstanding loans are good to have this new program of the SSS.  No, there still are conditions as to which this program flows through:

  1. SSS Members who reside in calamity disaster declared areas as of disaster date or as of application date.
  2. The member-borrower’s home address is one of the covered areas declared by the NDRRMC or the National Government under the state of calamity including:
  • Ondoy (2009)
  • Sendong (2011)
  • Pedring and Quiel (2012)
  • Pablo (2012)
  • Labuyo (2013)
  • Maring (2013)
  • Santi (2013)
  • Armed Conflict In Zamboanga (2013)
  • Bohol and Cebu Earthquake (2013)
  • Yolanda (2013)
  • Agaton (2013)
  • Glenda (2014)
  • Mario (2014)
  • Ruby (2014)
  • Seniang (2014)
  • Lando (2015)
  • Nona (2015)

The following are pointers on how to apply SSS Loan Restructuring Program

  • Secure two copies of an updated Statement of Loan Balance for Loan Restructuring Program from the nearest SSS branch.
  • If the member-borrower used to live in a calamity-stricken area but already transferred to another place, he can still apply as long as he submits an AFFIDAVIT OF RESIDENCY.
  • Fill-out a Loan Restructuring Application Form (MLP-01263)
  • SSS member must be under 65 years old.
  • SSS Member has not been granted any final benefit like retirement or total permanent disability.
  • Member-borrowers with final benefit claim application (retirement, death, or total disability) whose contingency date is on or before the last day of the availability period of the restructuring program are eligible for the program.
  • The final benefit claim must be filed within the availability period, which is from April 2, 2018 to October 1, 2018.
  • Member has not committed fraud against SSS and has been disqualified by doing so.
  • The principal and interests of past due short term loans of the member-borrower shall be consolidated into one Restructured Loan (RL1) payable either in full or installment payment.
  • Full Payment – If member-borrower wants to pay his loan in full, he must settle it within 30 days from the approval of his SSS Loan Restructuring Program application.
  • Installment Payment – to pay in installment basis, the loan is payable in equal monthly amortization over applicable term based o n RL1.
RL1 RANGE (Sum of Principal and Interest)Applicable Term
P2,000.00 to P18,000.0012 months
P18,000.01 to P36,000.0024 months
P36,000.01 to P54,000.0136 months
P54,000.01 to 72,000.0048 months
More than P72,000.0160 months

The member borrower may elect his preferred payment term but not to exceed 5 years.  Below P2,000.00 must be paid in FULL PAYMENT.

SSS Loan Restructuring Program INTEREST 3% Rate per Annum
SSS Loan Restructuring Program PENALTY0.5% per Month

Conditional Condonation & Interest Rate After Term Expiry

  • Penalties shall be condoned after full payment of RL1 within its approved term.
  • The balance of RL1 should be zero at the end of the term.
  • If not zero, and there is still remaining balance, the unpaid principal of the R1 and the proportionate balance of condonable penalty shall become part of the new principal under per Restructured Loan 2 (RL2) and shall be charge a 10% interest per annum until fully paid.
  • The unpaid interest of RL1 shall be transferred to RL2.

Monthly installment shall be due for payment every 10th day of the month following the amortization  mo nth. For example, the RL was approved April 2016, the first amortization is May 10, 2016. The member-borrower can pay at any SSS branch with telling facilities or any authorized collection agent of SSS. The SSS member-borrower cannot avail of other SSS short-term loan programs while the restructured loans is existing and can only avail of the short-term loan program after 6 months from the date of full payment of RL. The member-borrower cannot avail of any future condonation program once application is approved. Read Also: How to avail SSS educational assistance

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