.25-M SSS members take out salary loans in 1st quarter

MANILA, Philippines - The Social Security System (SSS), said that some 250,000 members availed themselves of salary loans in the first three months of this year.

Data from the agency showed that the releases amounted to P3.6 billion, 41 percent higher than the P2.6 billion released in the same period last year.

First quarter releases included renewals of employed members who regained loan eligibility after settlement of their overdue amortizations under a Loan Penalty Condonation program that started last Jan. 3.

The condonation program gave employers the opportunity to settle overdue loans of their employees without paying the one percent monthly penalty. Employers can pay in full within the six-month availment period or make installment payments for up to 24 months.

More than 215,000 borrowers during the first quarter this year were employees. Their loans comprised P3.3 billion or 91 percent of the P3.6 billion loan releases within the three-month period. About 27,700 more were voluntary members, including 2,500 overseas Filipino workers.

About 18,600 employees with a combined delinquency of P198.7 million have updated their loan accounts under the condonation program. But we anticipate a deluge of last-minute applications at our branches in the coming days.

The biggest increase in loan releases was in the Central Luzon region with 55 percent increase, adding: “It grew from P143.8 million in the first quarter of last year to P222.5 million for January to March this year.”

The National Capital Region, where half of the agency’s 29 million members are based, accounted for 55 percent or almost P2 billion of total salary loan releases – up 50 percent from P1.3 billion from January to March last year.