SSS members may now draw loans via Landbank

MANILA, Philippines - Members of the Social Security System (SSS), may now draw their salary loans through the facilities of the Land Bank of the Philippines (Landbank) in addition to the normal route which is via air mail.

SSS president and chief executive officer Romulo Neri said the agency has partnered with Landbank to allow members to draw their salary loans through the bank’s facilities in addition to the usual checks sent through the mail.    

Essentially, the new scheme would provide members additional ways to get their salary loans, Neri said.

The agreement with Landbank, he said, provides members a safe, convenient and cost-efficient way to get their salary loans which were usually mailed as checks to their residence or place of employment.

“The SSS-Landbank tie-up gives members the option to withdraw their salary loans as an alternative to getting a check. This is our latest thrust in providing better services by tapping electronic means,” Neri said.

With the program, members can avoid hassles of encashing checks. Members may also avoid other problems such as delays in receiving the checks by mail or these being sent to the wrong persons.

Neri said guidelines were being prepared for the loan proceeds to be credited to a member’s individual savings account through a passbook or ATM card, or to Landbank-issued cash cards.

Eventually, he said the agency would also tap other banks as partners for the program.

“Landbank is our first partner under the SSS salary loan releases through-the-bank program. In the pipeline are similar tie-ups with other banks to allow more members SSS will shoulder the cost of issuing the cash cards, which would give members access to their funds even outside banking hours through the automated teller machine (ATM) systems of Landbank, Expressnet, Megalink and Bancnet in the country and abroad.

Landbank cash cards can also be used as debit cards in over 10,000 accredited merchants under the Express Payment System.

SSS has so far released a total of P18.25 billion worth of salary loans in 2009, while releases for the first quarter of 2010 amounted to P2.54 billion.

Neri and Landbank president and chief executive officer Gilda Pico signed yesterday the memorandum of agreement to implement the program in the coming weeks.