This post shares info on the payment terms and amortization schedule available to approved applicants for the SSS Loan Restructuring Program of 2016. Info on other general terms and conditions are also shared on this article.
Do check if you meet the requirements in order to qualify for the SSS loan condonation program or SSS LRP. If you do, it’s time to know more about the restructured loan amount and payment term amortization schedule.
SSS loan condonation program terms and conditions, amortization schedule, payment terms info below:
The principal and interests of all past due short-term loans of the member-borrower shall be consolidated into one Restructured Loan (RL1) payable either in full or installment payment.
- Full payment – the restructured SSS loan is payable within 30 days from the approval of the restructuring application.
- Installment payment – the restructured SSS loan is payable in equal monthly amortization over applicable term based on RL1 range below.
For RL1 (Sum of Principal and Interest)
- Any amount less than P2,000 preferred term is Full Payment.
- P2,000 to P18,000 – 12 months amortization
- P18,000.01 to P36,000 – 24 months applicable term or amortization schedule
- P36,000.01 to P54,000 – applicable term is 36 months
- P54,000.01 to P72,000 – applicable term is 48 months
- SSS restructured loan amount that is more than P72,000 can be paid via a 60 months term
INTEREST RATE AND PENALTY
- For those SSS member-borrowers who opted for the installment term, RL1 shall be subject to interest rate of 3% per annum computed on diminishing principal balance over the applicable payment term.
- A penalty of 0.5% per month shall be charged against the amortization due for every month unpaid during the approved term.
*If you don’t want to suffer penalty fee, make sure that you pay your SSS restructured loan monthly amortization on time.
CONDITIONAL CONDONATION AND INTEREST RATE AFTER TERM EXPIRY
Penalties shall be condoned after full payment of RL1 within its approved term. The balance of RL1 should be zero at the end of the term. Otherwise, the unpaid principal of RL1 and the proportionate balance of condonable penalty shall become part of a new principal under Restructured Loan 2 (RL2) and shall henceforth be charged a 10% interest per annum until fully paid.
The unpaid interests and penalties of RL1 shall likewise be transferred to RL2.
DUE DATES and MANNER OF PAYMENT
- The monthly installment shall be due for payment every 10th day of the month following the amortization month. Amortization shall start on the month immediately following the approval date of the Restructured Loan.
This is the example provided by SSS:
Your restructured loan approval month is MAY 2016.
Your 1st amortization month is JUNE 2016
Your 1st installment amortization is due on JUNE 10, 2016.
OTHER CONDITIONS of the SSS LRP 2016 to 2017
- While the restructured loan is existing or outstanding, the member-borrower cannot avail of other SSS short-term loan program including Educational Assistance Loan Program.
- The member-borrower may avail of the SSS short-term loan programs after six (6) months from the date of full payment of the Restructured Loan.
- The member-borrower cannot avail of any future condonation / restricting program of SSS once this restructuring application is approved.
- During the term of the restructured loan, the member-borrower shall notify the nearest SSS branch of his / her updated contact information thru accomplishment of Member Data Change Request or the SS Form E4.
- In case member-borrower’s death, total disability or retirement, the total loan obligation or any unpaid amount of the loan as well as the interest and penalty thereon, if an, shall be deducted from the final benefits.
Check if you are eligible to apply for this SSS Loan Restructuring Program – Eligibility Requirements.
Check the types of acceptable IDs and documents to bring to SSS when you apply – Required IDs and Documents for application in SSS LRP.
Visit any SSS branch to apply for the SSS LRP loan condonation program. Bring all documents needed including Affidavit of Residency.
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