Definition

A short-term member loan program granted to eligible member-borrowers whose residence is in the areas affected and suffered losses or damages to their properties located in the calamity-stricken areas and shall be declared under state of calamity by National Disaster Risk Reduction and Management Council (NDRRMC).

Qualifying Conditions

To avail of the program, the members:

1. Must be registered in the SSS Website (My.SSS facility) to facilitate filing of online application.
2. Must have at least thirty-six (36) monthly contributions, six (6) of which should be posted within the last twelve (12) months prior to the month of filing of application.
3. Must have at least six (6) posted monthly contributions under the current coverage/membership type prior to the month of loan application for Self-Employed, Voluntary (including Non-Working Spouse), and Overseas Filipino Worker (SE/VM/OFW) members who are land based.
4. Must be residents of the calamity declared areas and suffered damages/loss to their properties. A resident, for the purpose of CLAP, is one who has a home address or property at the calamity-stricken area.
5. Have not been granted any final benefit, i.e., permanent total disability or retirement.
6. Must have no past due SSS Short-Term Member Loans.
7. Must not have an outstanding Loan Restructuring Program (LRP) or Calamity Loan Assistance Program (CLAP).

Loan Details

Loanable Amount

The loan amount shall be equivalent to one (1) Monthly Salary Credit (MSC) computed based on the average of the last twelve (12) MSC (rounded up to the nearest thousand), or the amount applied for, whichever is lower.

Repayment Term and Schedule of Payment

1. The loan shall be payable within two (2) years in twenty-four (24) equal monthly installments.
2. The loan amortization shall start on the 2nd month following the date of the approval of the loan.
3. Payment deadline shall be on or before the last days of the month following the applicable month.
4. In case the payment deadline falls on a Saturday, Sunday, or holiday, payment may be made on the next working day.
5. Payment shall be made at any SSS Branch Offices with payment facility, SSS-accredited banks, or SSS authorized payment centers.

Interest Rate, Penalty and Service Fee

1. The service fee of 1% of loan amount is waived.

2. The loan shall be charged an interest rate of 10% per annum until fully paid, computed on a diminishing principal balance, and shall be amortized over a period of twenty-four (24) months.

3. Pro-rated interest from the date of loan granting up to the end of the month prior to first amortization month shall be deducted in advance from the loan proceeds.

Sample Illustration

4. Any excess in the amortization payment shall be applied to the outstanding principal balance.

5. Loan amortization not remitted on the due date shall bear a penalty of 1% per month.

Consequence of non-payment

In case the member-borrower fails to immediately pay the outstanding balance, the arrearages/unpaid loan, as well as the interest and penalty thereon, shall be deducted from the benefits being claimed by the member, as follows:

1. For employed member – final benefits (total disability/retirement/death).
2. For self-employed/voluntary member – short term benefits (sickness/maternity/partial disability) or final benefits (total disability/retirement/death

Other Conditions of the Loan

1. Existing Calamity Loan must be fully paid before the member can avail of future Calamity Loans of SSS.
2. Any overpayment on a previous loan shall be subject to validation of SSS, and if valid, shall be applied to the active loan, if any. If there is no active loan, it shall be refunded to the member-borrower upon his/her request.
3. Aggregate unpaid obligation equivalent to more than six (6) monthly amortizations shall result to loan default. The full balance of a defaulted loan shall become due and demandable. A defaulted account is subject to 10% interest per annum to be charged on the outstanding principal balance and 1% penalty per month on unpaid principal and interest until fully paid.
4. Other terms and conditions in the existing salary loan guidelines not inconsistent with the above provisions shall be applicable in this program.

Loan Proceeds

The loan proceeds shall be released through any of the following:

Through Unified Multi-Purpose Identification (UMID) – Automated Teller Machine (ATM) Card:

If with activated UMID-ATM, the loan proceeds shall automatically be credited to member-borrower’s account.

 Through Philippine Electronic Fund Transfer System and Operations Network (PESONet) Accredited/Participating Banks:

Active single account in any PESONet accredited banks in the name of the member-borrower shall be enrolled in the DAEM and shall be used as mode of disbursement for CLAP application by accessing the member’s My.SSS account.

See How to Enroll an Account in the Disbursement Account Enrollment Module (DAEM)

Responsibilities of Employer (for employed members)

1. The employer must certify the Loan Application of their employees and must attest to the following:
   1. The borrower is presently employed by the employer or the company.
   2. The employee’s net take-home pay is sufficient to cover the deduction of the loan monthly amortization.
2. The employer shall be responsible for the collection through payroll deduction and remittance to the SSS of the amortization due on the employed member’s loan.
3. In case the employed member is separated voluntarily (e.g., retirement or resignation) or involuntarily (e.g., termination of employment or cessation of operations of the company) from the company, the employer shall deduct the total balance of the loan from any benefit/s due the employee and shall remit the same in full to SSS.
4. The employer shall report to the SSS the effective date of no earnings from the company of the employed member and its corresponding reason, through Payment Reference Number (PRN) – Loan Collection List (LCL) under the Real-Time Processing of Loans (RTPL) program, if the salary or benefit/s of the employed member is/are insufficient to fully repay his/her loan.
5. The employer shall require a new employee to secure an updated statement of account through his/her My.SSS account, deduct the amortization due from his/her salary and remit the payment to SSS.

Responsibilities of Member-Borrower

1. The member-borrower shall update his/her contact information by logging in to his/her My.SSS account through the SSS website or mobile application or by submitting a properly filled out Member Data Change Request Form (E-4) to the nearest SSS Branch.
2. A member who transfers employment shall automatically authorize his/her new employer to deduct from his/her salary the corresponding amortization due, including any interest or penalty for late remittance.

How to Apply

A member- borrower may file/submit the calamity loan application online thru the My.SSS Website, or thru the MySSS App

Member-borrower shall enroll/nominate his/her valid bank account in the Disbursement Account Enrollment Module (DAEM) and shall be used as mode of disbursement of calamity loan application by accessing the member’s My.SSS account.