SSS eases loan renewal process

MANILA, Philippines –  State-run pension funds, which have been swamped with loan applications after the destruction brought by two killer typhoons, are now bending over backwards in an effort to service the growing number of claims.

The Social Security System (SSS) has trimmed the requirements and procedures for loan renewals.

SSS president and chief executive Romulo Neri said the agency has stopped requiring its members to pay 50 percent of an existing loan before they can borrow again.

In a phone interview, SSS spokesperson Joel Palacios explained that under the new rule, the balance of a previous loan will be deducted from the approved amount of the new loan. For instance, a member with a previous loan balance of P20,000 will be able to borrow P4,000 if his loan renewal is approved at P24,000.

Loan applicants must have posted at least 36 contributions, six of which must be within the past 12 months.

SSS salary loans range from a minimum of P1,000 to a maximum of P24,000 payable in two years with a two-month grace period.

SSS said applications for loan renewals ballooned to nearly 45,000 after it relaxed its loan policies.

The pension fund also advised its members to get their checks at the Office Services Department at the 2nd floor of the SSS Corporate headquarters in Diliman Quezon City.

“SSS normally mails the checks to members, but we believe it would be faster and more secure if we release it directly to the members,” Neri said. “Many of our members lost their homes and stay with relatives. Their checks might get lost or get returned to SSS.”

Members are advised to call the SSS hotlines at 917-7777, 920-6401, or 920-6446 to 55 to verify if their checks are ready for pick up. They must bring their SSS biometric card or identification documents such as tax identification number ID, driver’s license, passport, NBI clearance, permit to carry firearms, marriage contract, and PRC ID. Those without IDs must present a barangay and police clearance.

Meanwhile, Pag-IBIG members in Northern Luzon who have existing housing and short-term loans can apply for a three-month moratorium at the Pag-IBIG branch nearest their place, Vice President and Housing and Urban Development Coordinating Council (HUDCC) chairman Noli de Castro said yesterday.

De Castro said the Home Development Mutual Fund (Pag-IBIG Fund) Board of Trustees also approved the allocation of home reconstruction and rehabilitation loans of up to P150,000 to members with existing housing loans.

“We are still assessing the damage done by typhoon ‘Pepeng’ in Northern Luzon. I have instructed the management of Pag-IBIG to immediately allocate the needed funds for lending,” De Castro said.

Pag-IBIG has also approved P3.1-billion worth of calamity loan applications.

De Castro said he has also directed Pag-IBIG to release another P3 billion for calamity loans.

He said because of the increasing number of applications, processing of loans will now take up to 10 days.

The Government Service Insurance System (GSIS) yesterday said 63,242 members affected by storm “Ondoy” have received their P20,000 calamity loan as of Oct. 9.

GSIS senior vice president for National Capital Region/Luzon & Vismin Group Dionisio Ebdane Jr. said of the 118,526 loan applications, 103,145 were already approved.

“We have already disbursed P2 billion of the P5.5-billion allocation for the victims of Ondoy,” he said at the weekly Kapihan sa Manila Hotel media forum.

The P20,000 calamity loan is offered to GSIS members residing in a government declared calamity area.

The loan matures in three years at an interest rate of eight percent per year.

Contractual employees affected by the storms may apply for the loan if they have worked with the government for at least three years.

Ebdane said members can apply for the loan through their GSIS electronic cards (E-card) in all GSIS offices as well as GSIS stalls in selected SM malls.

Those who lost their E-cards in the flood may apply for the loan at the GSIS head office in Pasay City or at any GSIS branch nationwide.

GSIS members whose cards are intact are also encouraged to apply for new ones.

Ebdane said the government has also allocated P550-million worth of calamity loans for GSIS members in Tuguegarao, Cagayan Valley and Albay who were affected by typhoon Pepeng. –-(The Philippine Star) with Helen Flores and Pia Lee-Brago