SSS offers salary, housing loans for typhoon victims

STATE-RUN Social Security SSS (SSS) said members affected by Typhoon Juan can avail of the pension fund’s salary and house repair loan programs. “We have a huge delinquency in short-term loans. But those affected by the recent typhoon can still avail of salary and house repair loans,” Emilio de Quiros Jr., SSS president, said in a statement.

The pension fund said it has exceeded the 10-percent ceiling for short-term loans because of the low repayment rate of member-borrowers. But it is trying to collect delinquent loans so that it can comply with the charter limit.

The fund suspended its calamity loan program in 2000 after it breached the 10 percent limit, as provided by the Social Security Law of 1997. A review is being undertaken to evaluate options to extend loans to members in calamity areas while complying with the mandate on short-term loan ceilings.

“Latest figures show that P44.8 billion or about 17 percent of the P271-billion investment reserve fund are placed in short-term loans. It means we are over the limit by about seven percent,” de Quiros said, adding that unpaid short-term loans of members amount to about P28 billion.

SSS grants salary loans of up to P24,000 to members with a minimum of 36 contributions, at least six of which must be within the last 12 months.

Active members with at least 12 months of continuous contributions or a minimum of 24 monthly premiums can also borrow up to P300,000 under the house repair loan program, and payable for up to 20 years.

Typhoon Juan, which carried winds with a speed of up to 225 kilometers per hour, entered the country on October 18 and affected nearly 2 million people or about 400,000 families in 23 provinces in Luzon. The total damage was estimated at P8.3 billion. –LIKHA CUEVAS-MIEL, Manila Times