CEBU, Philippines - The Social Security System in Cebu is urging delinquent loan borrowers to avail of their ongoing loan amnesty program, which will end at the end of the month.
SSS Cebu Branch Manager Mario Corro during the AGIO-7 forum yesterday told these borrowers to take advantage of the condonation program in order to receive the full benefits of their membership when they retire or in cases of total disability and death.
According to Corro, borrowers whose loans are neglected and left unpaid would have to face ballooning monthly penalties making it harder for them to settle in the future.
They also face delay in availing of their pension or they might have no pension at all because the benefits would first be applied in paying the overdue loan, added Corro.
Janice Caballes, SSS chief for Accounts and Monitoring Section said that so far there are 2,940 SSS members in Cebu who applied for amnesty.
But Caballes said SSS-Cebu cannot determine the number of delinquent borrowers here but only the number of borrowers in the entire region which is 654,000.
In a separate press statement, SSS said that more than 80,000 members have settled their overdue loan obligations and benefited from condoned penalties amounting to P590.79 million under an ongoing amnesty program.
SSS President and Chief Executive Officer Emilio de Quiros, Jr. said collectible amounts from 80,994 borrowers who availed themselves of the Member Loan Penalty Condonation Program totaled P1.03 billion, which includes the principal, interest and outstanding penalties.
The six-month availment period of the condonation program for delinquent borrowers will end on September 30, 2012.
The SSS grants condonable penalties of 50 to 100 percent, depending on the borrower’s situation and mode of payment under the program.
De Quiros said members can file their applications for penalty condonation at the nearest SSS branch, while those who no longer need to submit supporting documents can apply electronically by logging on at www.sss.gov.ph.
The SSS offers 100 percent condonation of penalties to borrowers under Situation 1-A, or those whose employers failed to remit the loan amortizations deducted from members’ salaries. They can submit proof of employers’ unremitted loan payments such as pay slips or affidavits.
Borrowers with at least three paid amortizations and a minimum of three contributions within the last six months before the month of application, or contributions for the next three months, qualify under Situation 2, which condones 90 percent of penalties for full payment and 80 percent for installment payments of up to three years.
De Quiros added that members applying under Situation 2 no longer need to wait for posting of the required contribution and loan payments.
They can simply present SSS receipts as proof of payments so that we can immediately process their application for condonation.
Delinquent borrowers filing retirement or total disability claims within the availment period can apply for penalty condonation under Situation 3. Half of their loan penalties will be waived and the rest will be deducted from their retirement or disability claim.
De Quiros further said the amnesty is also extended to beneficiaries of member-borrowers who died with unpaid loans (Situation 1-B) to enable dependents to receive the full amount of death benefits. They can file their application for condonation with their SSS death claim until March 13, 2013. — (FREEMAN)