SSS now processes salary loans in 2 days

The Social Security System (SSS) has cut down its processing time for salary loans from several days and even weeks to just two days after implementing a service enhancement program in pilot areas across the country, a senior official said yesterday.

Mario Sibucao, SSS vice president for technical support, said the speedy processing of salary loan applications was a result of the Covenant of Service (COS), a service enhancement program which SSS introduced last November in 30 of more than 100 SSS branches nationwide.

"When we implemented COS our target was four days. If a member submitted a salary loan application on a Monday, we want the check to be out by Thursday for mailing," he said in a statement.

"We have exceeded our target. In the pilot areas — the cities of Dagupan, Baguio, Quezon and Pasig in Metro Manila, Bacolod, Iloilo, Davao and Butuan — the average processing time is two days," said Sibucao, COS project chairman.

The salary loan is one of SSS’ most popular loan windows. From January to September last year, SSS disbursed P7.213 billion in salary loans to 592,359 members compared with P5.257 billion released to 527,523 members during the same period the previous year.

Any active SSS member, who has paid a minimum of 36 contributions, is eligible to apply for a P15,000 salary loan at an annual interest rate of six percent.

On the other hand, active members with at least 48 monthly contributions and have no gaps in their contributions in the last 36 months, can avail themselves of a P24,000 salary loan.

Salary loans are payable in two years. Loans over P15,000 are subject to eight percent interest per annum.

Sibucao said SSS employees underwent training on new application modules and procedures to meet the objectives of the COS project, which will be expanded to cover other member entitlements such as death, disability and retirement benefits.

In the case of salary loans, "we first establish the eligibility of the member before we accept his or her application," Sibucao said.

"From the online data, we know immediately whether an applicant is qualified. So, almost all applications that are accepted are usually approved," he said.