How to Avail SSS Pension Loan Program

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The Social Security System (SSS) is the government-run social insurance program for private sector employees. They offer a lot of benefits and social security programs for their members. I’m aware that all employees have an idea of how the SSS Pension works.


Apply For the SSS Pension Loan Program Now!
This image was taken from The Philippine Star | Philstar.com

But that’s not what we’re going to talk about for today. Today, we will be tackling a more useful benefit; we’ll be talking about the SSS Pension Loan Program or the PLP.

Read: How to Get SSS Payment Reference Number (PRN) – A Helpful Guide

In this article, we will discuss what the SSS Pension Loan Program is, who is eligible for it, how SSS members can use it – everything you need to know about it.

What is the SSS Pension Loan Program?

To start off, the SSS PLP is a low-interest short-term loan program for SSS pensioners. Pensioners have a chance to use whatever the amount they’ll be given for whatever purpose they seem fit; for medical expenses, personal use, lease payments, and the like.

So if a pensioner is looking for an entity to provide them a short-term loan, they can look no further.

Read: How can You Check if Your PhilHealth, SSS, and Pag-IBIG Contributions are Being Paid by Your Employer?

Who are eligible to avail the SSS Pension Loan Program?

Other than being a pensioner, the SSS Pension Loan Program would require interested applicants to at least meet the following requirements:

  • The potential applicant should have no deductions such as an outstanding balance or a benefit overpayment payable to the SSS
  • Must have no advanced pension plan/program under the SSS Calamity Benefit
  • Should have been receiving regular monthly pensions for the last six (6) months; and
  • Must be a retiree pensioner who is between 55 to 80 years old at the end of the month of the loan term. 

How much can you borrow from the SSS Pension Loan Program?

The loan amount that eligible pensioners can borrow is based on the basic monthly pension (BMP) of the pensioner; along with the additional P1,000.00 benefit.

Read: How Much Will People Get From the SSS Retirement Benefit and How They can Get it

It is worth noting too that the pension of the dependent, in this regard, is not included. That being said, the borrower is given the option to avail any of the following loanable amounts but must not exceed the maximum loan limit of P200,000.

  • 3 x the (BMP + P1K additional benefit)
  • 6 x the (BMP + P1k additional benefit)
  • 9 x the (BMP + P1k additional benefit)
  • 12 x the (BMP + P1k additional benefit)

For instance, if the basic monthly pension is P2,000; and the pensioner chooses the 6 x option, it’ll be 6 x P2,000 + P1k, totaling P18,000.00.

How do you apply for the SSS Pension Loan Program?

Currently, only about twenty (20) SSS branches are accepting SSS Pension Loan Program application. However, the SSS is continually improving their reaches for all SSS branches to be able to offer and process the SSS PLP.

Read: SSS Maternity Benefit: You Can Now Inform SSS via SMS

Nevertheless, the branches that accept PLP applications are:

  • Alabang
  • Bacoor
  • Baguio
  • Binan
  • Cagayan de Oro
  • Caloocan
  • Cebu
  • Dagupan
  • Davao
  • Diliman
  • General Santos City
  • Ilagan
  • Iloilo Central
  • Manila
  • Makati (Gil Puyat)
  • Naga
  • New Panaderos (Mandaluyong City)
  • Pasig (Pioneer in Shaw)
  • Tacloban
  • Zamboanga

To try and apply for the SSS Pension Loan Program, all you have to do is to proceed to the branch with your Unified Multipurpose ID (UMID) or your SSS ID.


Read: How Much Will I Get If I Avail For An SSS Maternity Benefit?

Along with those, you need to present two (2) valid IDs with your signature on it. They might also ask for a photo so bring one (1) in case.

When you’re there, just tell the personnel there that you’re trying to apply for the SSS Pension Loan Program. The windows will try and validate your eligibility for the loan program.

If you’re eligible, then they’d tell you that you can avail the loan. Otherwise, they will tell you why you’re not so you can fix it from your end.

Read: Duterte’s Signing of a Law Which Will Grant P50,000 Bonuses to SSS Members is FALSE

Why should you choose the SSS Pension Loan Program instead of regular loans?

Other than the fact that it’s one (1) of the main benefits of the agency, it can also benefit its members one way or another. The program holds a certain amount of benefit and importance to SSS members that everyone should know about.

Read: The Updated SSS Contribution Table 2020

Flexible and light repayment terms

The monthly amortization of the loan will be deducted from the monthly pension that the pensioner will get. Basically, the pensioner is not required to “remit;” it will automatically be deducted from the pension.

The deduction is also dependent on the amount that the pensioner loaned. It goes as follows:

Loaned Amount

Repayment Term

(BMP + P1K benefit) x 3Six (6) months
(BMP + P1K benefit) x 6Twelve (12) months
(BMP + P1K benefit) x 9Twenty-four (24) months
(BMP + P1K benefit) x 12

As you can see, the repayment terms are flexible and it’s not like how financial institutions would ask for repayment. The repayment process would be cut down from the monthly pension received by the pensioner.

Read: How to Apply For The SSS Housing Loan For Repairs and/or Improvements

As per the SSS, the first (1st) monthly amortization payment would be due on the second (2nd) month after the loan was granted. For instance, if the loan was granted on March, the first (1st) monthly amortization would be deducted from the monthly pension for May.

Low interest rates

Another benefit of that the SSS Loan Pension Program provides is its low interest rates. The SSS is known to have smaller interest rates than those of the banks.

Meaning, it is more flexible and more attainable especially to people who aren’t earning that much. Because of this, the SSS Loan Pension Program is one of the best choices for seniors or retirees. With only an interest rate of ten (10) percent per annum until it’s fully paid, it’s really a good deal.

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

It is also worth noting that it’s computed on a principal balance that will diminish, becoming a part of the monthly amortization.

No processing or service fee

Unlike other financial and banking institutions who issue loans, the SSS pension loan program would not cut off anything from the credit to the pensioner. According to them, the SSS will be waiving the one (1) percent collection service fee to subsidize the payment of the premium of the Credit Life Insurance (CLI) by the pensioner/borrower.

Applying for the SSS Pension Loan Program is easy. In fact, it could be one of the most beneficial and most efficient loan programs in the country. It is, however, only available to pensioners. So if you know a pensioner who needs to borrow money, the SSS Pension Loan Program might be the one they’ll choose.

Read: SSS Guide: How do You Compute The SSS Monthly Pension?

What are you waiting for? If you know someone who might need this service,  go and make their lives easier by sharing this to them! The SSS Pension Loan Program might just be the service you’ve been looking for.

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