Definition

A cash loan granted to retirement pensioners which aims to assist them in their financial needs through a loan window which does not require ATM cards as collateral, and at a low interest rate.

Qualifying Conditions

The SSS Pension Loan is a safe and secured loan privilege for retiree-pensioners who will meet the following conditions:

  1. Must be eighty-five (85) years of age or below at the end of the month of loan term.

NOTE: The term of the loan plus the age of the pensioner at the time of application should not exceed eighty-five (85) years.

  1. Must have no deductions from his/her monthly pension (such as for outstanding loan balance, benefit overpayment payable to SSS, and the like).
  2. Must have no existing advance pension under the SSS Calamity Assistance Package.
  3. Must be receiving his/her regular monthly pension for at least one (1) month, and the status of pension is “active”.
  4. Must have an approved disbursement account enrolled in the Disbursement Account Enrollment Module (DAEM).
  5. Must have updated contact information (cellular/mobile number, email and mailing address).

 

NOTE: 

  1. If the retiree pensioner availed of the eighteen (18) months advance pension, he/she must be receiving his/her regular monthly pension for at least one (1) month.
  2. SSS Retirement Pensioners under the Portability Law, and those under the care and custody of a guardian are excluded from this loan program.

Loan Details

Loanable Amount

The loan amount is based on the Basic Monthly Pension (BMP) plus the Php1,000.00 additional benefit. The pensioner-borrower may choose from the following loanable amounts, but not to exceed the maximum loan limit of Php200,000.00.

Loanable Amount Repayment Term
3 x (BMP + Php1,000.00 additional benefit) 6 months
6 x (BMP + Php1,000.00 additional benefit) 12 months
9 x (BMP + Php1,000.00 additional benefit) 24 months
12 x (BMP + Php1,000.00 additional benefit)

 

Interest Rate

The interest rate is 10% per annum computed on diminishing principal balance until fully paid.

 

Loan Processing Time

The pension loan shall be released within three (3) to five (5) working days from date of application.

  • Three (3) working days for ONLINE applications, or
  • Five (5) working days for OTC (Over-the-Counter) applications.

Reminders:

    • For Online applications, a My.SSS account is required.
    • For OTC (Over-the-Counter) applications, submission of loan application must be done personally at the nearest SSS Branch. The retiree-pensioner only needs to present his/her SS Card or UMID Card or any government-issued ID/documents with photo.

 

Fees

There is a minimal fee of Php25.00 for the Quick Card or Cash Card. The cost shall be shouldered by the pensioner-borrower and shall be deducted from the loan proceeds by the bank.

 

Monthly Amortization

The loan amortization shall be deducted from the monthly pension. The first amortization shall become due on the second month after the loan was granted. For example, if the loan was granted in May, the first amortization shall be deducted from the pension for July.

 

Insurance

All pensioner-borrowers are covered by Credit Life Insurance (CLI), which ensures that the outstanding loan balance is fully paid in case of the untimely demise of the pensioner-borrower.

The 1% service fee usually charged by the SSS is now waived and shall be used instead to subsidize the pensioner-borrower’s CLI premium.

How to Apply

 

  1. Log in to your My.SSS Member Account.
  2. Click Loans > Apply for Pension Loan.
  3. Choose the disbursement account where you want to receive the proceeds of your Pension Loan. If you have not enrolled a disbursement account for the electronic disbursement of your Pension Loan, your application will be automatically rejected. If you have not yet chosen an account for your Pension Loan disbursement, the Submit button will remain disabled.
  4. Choose your preferred Pension Loan amount from the computations displayed on the screen by clicking the “Submit” button below each computation.
  5. Check all the details of your application, then tick the small box on the left side of the “Acknowledgment, Authorization and Agreement” box screen. This signifies that you agree with the amount of Pension Loan as stated in the Disclosure Statement, the deduction of your monthly loan amortization from your monthly pension and the Terms and Conditions of the Pension Loan Program.
  6. The Terms and Conditions of the Pension Loan Program shall be displayed. Click the “I have read and agree to the Terms and Conditions” button to proceed with the application.
  7. Click the Disclosure Statement and download or print a copy.
  8. Close the Disclosure Statement page to activate the Submit Pension Loan button. Then click “Submit Pension Loan”.
  9. A notification screen shall be displayed regarding the successful submission of your loan application.
  10. The same notification shall also be sent to your registered email address.

Loan Renewal

The pensioner-borrower shall be allowed to renew the loan only after full payment of the current loan.