How the SSS Condonation Program helped us pay our SSS Loan easily

When the Philippine Social Security System offered the SSS Condonation Program or SSS Loan Restructuring Program (LRP), my mother-in-law (MIL) took advantage of it and filed it immediately.

Just to give you a short background, my MIL loaned P20,000 from SSS way back 2005 and she never paid it. Not a single centavo was paid to the SSS after she got the loan. When the SSS officer computed her loan balance, we were shocked when he told us that the loan has already ballooned to P67,528.78 in a span of 11 years including the interest and penalty.

Here are the details of her loan balance:

  • Loan Amount: P18,485.58
  • Interest: P17,499.84
  • Penalty: P31,543.36
  • TOTAL Loan Balance: P67,528.78

When the SSS officer re-computed, my MIL’s outstanding loan balance including the principal amount and the interest (less penalty) is now P35,985.42. The penalty amounting to P31,543.36 will be condoned or waived upon full payment of the loan within the approved term.

My MIL promised to pay the loan in 12 months.

Therefore, P35,985.42 plus 3.04% per annum interest rate, her total outstanding loan balance is P36,572.88. Her monthly amortization is P3,047.74 for 12 months and she’s supposed to pay it from October 2016 to September 2017.

My MIL paid her first 2 monthly amortizations in December 2016 and paid the rest of her loan balance on August 15, 2017.

The SSS Condonation Program was really a big help. It allowed my MIL to pay her overdue loan easier without the penalty. She’s happy now that she’s finally paid her SSS loan and she’s thankful to SSS for the LRP.

The SSS Condonation Program has already ended last April 2017 but let me just share with you the steps on how we applied for it.


How to Apply for the SSS Loan Restructuring Program: 

  1. Secure an updated Statement of Loan Balances for Loan Restructuring Program (2 copies) from the nearest SSS branch.
  2. Fill out the Loan Restructuring Application Form.
  3. Accomplish an Affidavit of Residency attesting residence/work address in a covered calamity area when the calamity/disaster happened.
  4. Submit a duly accomplished Loan Restructuring Application form together with the signed Statement of Loan Balances and notarized Affidavit of Residency, if applicable.
  5. Secure Disclosure Statement and Notice of Approval (to be issued by SSS).
  6. Pay the amount due (full payment or installment) of the Restructured Loan 1 on or before the schedule of payment/s stated in the Notice of Approval. Otherwise, the condonable penalty shall be reverted and become part of new principal subject to 10% per annum until fully paid.

Other Reminders about the SSS Loan Restructuring Program: 

  • While your Restructured Loan is outstanding, you cannot avail of other SSS short-term loan programs including Educational Assistance Loan Program.
  • You cannot avail of any future condonation programs of SSS corollary to the approval of your Loan Restructuring Application.
  • In the event of default, SSS shall have the right to deduct the outstanding loan from the benefits that you will receive upon retirement, death, or total disability.

Btw, my MIL also filed a claim for Disability Benefit. In 1-2 months, we’ll find out if it’s approved and how much she’s going to receive for her disability pension. Click here to read more about her SSS Disability Benefit Application.

Click here to read: 7 Steps for SSS Online Registration 

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