Are you an SSS member struggling to pay off your Short-Term Member Loan (STML)? The SSS Conso Loan Program offers a solution. This program allows qualified members to consolidate their past-due STML balance, including penalties, and repay it in convenient installments. By taking advantage of the SSS Conso Loan, you can avoid further penalties and ensure a smoother retirement process. Here’s how it can work for you.
The SSS Conso Loan
Qualified members of the Social Security System (SSS) have the privilege of borrowing cash from the SSS to help supplement their needs. This is called Short-Term Member Loan or STML. The STML proceeds are credited directly to the member's bank account linked to their SSS account. The STML is particularly useful during enrollment periods or emergencies. With a reasonable annual interest rate of 10%, member borrowers can easily repay the loan.
There are times, however, when paying off the loan may be derailed due to unforeseen circumstances. For example, if a member-borrower suddenly becomes unemployed or needs to allocate the money intended for loan payments to other pressing needs, the amortizations may be overlooked. This can result in penalties, and if left unpaid until the member retires, the unpaid loan and accrued interest will be deducted from the member's retirement benefit claims.
To help members pay off their unpaid STML balance, the SSS implemented the SSS Conso Loan Program (Consolidated Loan with Penalty Condonation). This is a helpful resource for members facing difficulties with the short-term member credits. Available since October 4, 2022, this program allows members to resolve their past-due balances.
Table of Contents
- What is the SSS Conso Loan?
- What are the features and benefits of the SSS Conso Loan Program?
- Who are qualified for the Conso Loan Program?
- What is the process for condoning Consolidated Penalties?
- What is the monthly interest rate for the SSS Conso Loan under the installment plan?
- How long after a Conso Loan has been fully paid before the member-borrower can file for a loan renewal?
- How to apply for SSS Conso Loan?
What is the SSS Conso Loan?
The Conso Loan Program combines all of a member's outstanding loans, including the principal amounts and interest, into a single loan. This means that instead of having multiple loans to pay back, the member will only have one consolidated loan. While the unpaid penalties will not be forgiven, they will be included in a separate calculation and combined with the consolidated loan.
What are the features of the Conso Loan Program?
- All penalties are waived if the loan is paid in full.
- The loan can be repaid over a longer period.
- There are no additional charges under the Conso Loan.
- Application is simple and straightforward.
- Paying off your loans under the Conso Loan program will improve your standing with the Social Security System.
Who are qualified for the Conso Loan Program?
Members who have outstanding balances on Salary, Calamity, Emergency, or Restructured Loans are eligible for the Conso Loan Program. Additionally, members who have not yet applied for or received final SSS benefits, such as retirement or permanent total disability benefits, can also participate in this program.
To apply for loan condonation through the Conso Loan Program, members must have an active My.SSS account and have not been previously disqualified due to fraudulent activities against the SSS.
What is the process for condoning Consolidated Penalties?
The condonation of consolidated penalties shall be subject to the following:
- One-time Payment Term – A one-time, full payment of the SSS Conso Loan within the specified period will result in the complete condonation of the consolidated penalties.
- Installment Plan – The condonation of the penalty shall be calculated based on the amount paid, as follows:
- A penalty proportionate to the percentage of the down payment shall be condoned upon the timely payment of the required down payment.
- The full condonation of the remaining penalty shall be dependent upon the full and timely payment of the outstanding SSS Conso Loan within the stipulated timeframe.
If you have any remaining balance on the SSS Conso Loan after the due date, you will be considered in default. You will be charged the full penalty again and this will be due immediately.
What is the monthly interest rate for the SSS Conso Loan under the installment plan?
- 10% INTEREST PER ANNUM - The interest rate will decrease as you pay off the loan, and you'll spread out the payments over the entire loan term.
- 1% PER MONTH - A late payment charge shall be imposed on any monthly amortization paid after the due date and shall continue to accrue until full payment is made.
How long after a Conso Loan has been fully paid before the member-borrower can file for a loan renewal?
The waiting period for a member-borrower to begin applying for loan renewals with the SSS is three months after the SSS Conso Loan has been fully paid. This applies for those with a clean credit history. However, if you defaulted on a previous loan, you would need to wait two years before you can apply again.
How to apply for SSS Conso Loan?
To apply for the consolidation of past due loan accounts, the member-borrower must have an active My.SSS account as the application may be done online.
Simply log in to your My.SSS account, click on Loans, and then click on Consolidation of Past Due Short-Term Member Loan with Condonation of Penalty Program and then follow the instructions.
Conclusion
Every Filipino worker must register to become a member of the SSS. Regular contributions are crucial for accessing SSS benefits during retirement or in case of unforeseen circumstances. Ensure your SSS contributions are accurately posted to your account to guarantee a smooth retirement and timely access to benefits like maternity, disability, and sickness.
Registering to become a member of the SSS is easy and applying for a temporary SSS number may now be done online. To make your SSS number permanent, you must complete the required documents and submit these to an SSS office. The primary document required when applying to become a member of the SSS is an original copy of your PSA birth certificate, while married applicants may also be required to present an original copy of their PSA marriage certificate.
Did you know that you can order your PSA certificates online and have these delivered to you? Just visit www.PSAHelpline.ph, an online channel recognized by the Philippine Statistics Authority (PSA) to handle online ordering and delivery of PSA certificates nationwide.
