The Social Security System (SSS) has collected more than P5.22 billion in overdue loan payments from member-borrowers who availed of the Loan Restructuring Program (LRP) in the last 12 months, and expects to collect nearly P9 billion more in the next five years.
SSS President and Chief Executive officer Emmanuel F. Dooc said the total condoned amount for more than 850,000 members who availed of the LRP reached P13.83 billion over the one-year period the program was offered.
“We are very much overwhelmed by the huge volume of applicants especially during the last few days before the deadline. We hope that members will be faithful in paying their restructured loan amortizations to avoid further penalties. We are expecting P8.6 billion in collection until the end of the five-year installment term,” Dooc said.
Due to the massive influx of LRP applications received, SSS hopes to implement the loan condonation program regularly with the approval of its proposed charter amendments.
One of the provisions of the proposed bill is to rationalize the power of the Social Security Commission, which includes making it an approving authority for loan condonation programs instead of the President of the Republic of the Philippines.
Launched last April 28, 2016, the LRP provided relief to delinquent borrowers by allowing them to settle their unpaid SSS loans in full within 30 days with no additional interest, or through flexible payment terms of up to five years at a low interest rate of three percent per annum.
“We would like to remind our LRP availees that loan penalties will be completely waived only after full payment of the principal amount and interest of 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,” Dooc concluded.
As part of the program’s terms and conditions, members who availed of the LRP can no longer avail of future condonation programs. However, members can apply for another SSS loan six months after they have fully paid their financial obligation under the LRP.
Majority of the LRP applicants were employee-members who contributed P3.23 billion worth of collection. While voluntary members, who represented 27 percent of total availees, paid an initial P1.38 billion.
Self-employed members, who availed of the LRP reached over 39,000, with an equivalent collection of P194.37 million. More than 46,000 OFW-members also benefitted 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, with 258,916 applications, 103,329 applications and 96,609 applications, respectively. SSS foreign offices processed 25,515 LRP applications.
SSS Diliman, Davao, Calamba, Bacoor, and Cebu received and processed the largest volume of LRP applications. While foreign offices in Dubai, Riyadh, Hongkong, Doha and Singapore facilitated the highest number of LRP applications overseas.
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