MANILA, Philippines – State-run Social Security System (SSS) expects to collect P8.6 billion of overdue loan payments from member-borrowers who availed of the Loan Restructuring Program (LRP) in the next five years.
In a statement over the weekend, SSS president and chief executive officer Emmanuel Dooc said a total of P5.22 billion worth of overdue payments from members who availed the LRP last year was collected by the fund in the past 12 months.
The LRP, which was launched last April 2016, allows delinquent borrowers to settle their unpaid SSS loans through flexible payment terms of up to five years at a low interest rate of three percent per annum.
Member-borrowers were initially given until April 27, 2017 to apply for the program, but the deadline was extended until May 2 given the strong volume of LRP applications.
Total condoned amount for more than 850,000 members who availed of the LRP reached P13.83 billion, according to the SSS.
“We are very much overwhelmed with the huge volume of applicants especially during the last few days before the deadline,” Dooc said.
“We hope that they are more persistent in paying their monthly obligations so they could avail of the condonation of penalties as soon as they have paid in full their outstanding loan,” he added.
Dooc said the fund expects to collect an additional P8.6 billion until the end of the five-year installment term of the LRP, on top of the P5.22 billion already collected.
“We would like to remind our LRP availees that loan penalties will be completely waived after full payment of total loan principal and interest under the restructured loan. So they are advised to pay their financial obligations on time to prevent an additional penalty of 0.5 percent per month,” he said.
Members who availed of the LRP have the option to pay their past due loans in full within 30 days with no additional interest, or through installment basis of up to five years with a minimal interest rate of three percent per annum.
Under the terms and conditions of the LRP, members who availed of the loan restructuring are already excluded from future condonation programs.
It added that members who availed the LRP can only apply for another SSS loan six months after they have fully paid their financial obligation under the LRP.
The SSS said majority of the LRP applicants were employee-members who contributed P3.23 billion worth of collection.
In contrast, voluntary members who represented 27 percent of the overall total, paid an initial P1.38 billion.
Also, more than 39,000 self-employed members availed of the LRP with an equivalent collection of P194.37 million while more than 46,000 OFW-members benefited from the program with a total remittance of P412.76 million.
In terms of geographical location, the National Capital Region (NCR) received the largest volume of LRP applications with 372,469 followed by Luzon, Visayas and Mindanao area with 258,916 applications, 103,329 applications and 96,609 applications respectively. SSS foreign offices processed 25,515 LRP applications.
Moreover, SSS Diliman, Davao, Calamba, Bacoor, and Cebu received and processed the largest volume of LRP applications. While foreign offices in Dubai, Riyadh, Hong Kong, Doha and Singapore facilitated the highest number of LRP applications overseas.