The Social Security System or SSS launches the Calamity Loan Assistance Package. There are 3 types of loans under this program, CLAP, Pensioner’s Loan, and Home Repair and/or Improvement.
This post is about the SSS Home Repair and/or Improvement Loan Program.
COVERAGE and ELIGIBILITY
The following SSS members are qualified to apply under this special calamity loan assistance:
1. The applicant must be an SSS members who are currently employed, self-employed, voluntary and OFW members, whose residence is located in the disaster area and whose house was destroyed/damaged due to Super Typhoon Roily, Typhoon Quinta and Typhoon Ulysses.
2. The calamity areas identified based on a declaration to be made by the National Disaster Risk Reduction and Management Council (NDRRMC).
3. The applicant must have a total of at least twenty-four (24) monthly contributions of which three (3) contributions are within the last 12-month period prior to the month of filing of the application;
4. The age of applicant is not more than sixty (60) years old at the time of filing of application;
Those who are over 60 and are pensioners, they may file for the special calamity assistance for SSS pensioners.
5. The applicant has not been previously granted a House Repair and/or Improvement Loan by the SSS;
6. The applicant has not been granted final SSS benefit nor was refunded SSS contributions; and
Those who are pensioners, who were given the total disability benefit, as well as those whose SSS premium contributions were refunded are not qualified to apply.
7. The applicant and his/her spouse (if applicable) must be up-to-date in the payment of all other existing loan/s with the SSS.
Loan Amount, Interest, Penalty
The Loan Amount that may be applied for is a maximum of One Million Pesos ( P1,000,000.00).
SSS will not levy processing fee for this special calamity loan.
The loan shall be charged a penalty amounting to 1.5% of the amount due for every month of delay or a fraction thereof until updated or fully paid.
Loan Amount Interest Rates
Up to P450,000.00 is 8% p.a.
Over P450,000.00 up to 1M is 9% p.a.
LOAN PAYMENT TERM
The loan amortization period shall be in multiple of five (5) years with a maximum term of 20 years, plus six (6) months moratorium, but shall in no case exceed:
1. The economic life of the house/improvement, after repair and/or improvement are introduced, as determined by the SSS; and
2. The difference between the age of the applicant and sixty-five (65).
There shall be a six months moratorium in monthly amortization and interest payments. The loan shall commence on the 7th month and shall be payable in equal monthly amortization during the term of the loan.
Repricing rate shall be based on six (6) months average PHP BVAL Reference Rate at present or its equivalent referring to the remaining term of the loan plus 1% credit risk premium.
The collateral used to secure the repair and/or improvement loan shall be the house and lot or condominium unit being applied for repair and/or improvement. The collateral must meet the following specifications:
1. The OCT/TCT/CCT of the land is registered with the Registry of Deeds under the Torrens System and is in the name of the principal applicant and spouse, if applicable; and
2.The title must be free from liens and encumbrances except those which are held by the SSS.
The loan shall be duly covered by Mortgage Redemption Insurance and Property Insurance which shall be implemented in accordance with existing policies of the SSS, as follows:
1. The first year insurance premium shall be deducted from the first release (for staggered payment) or full release (for one-time payment) of the loan amount.
2. Succeeding annual premium shall be paid monthly spread equally over one (1) year together with the housing loan amortization effective upon first/full release of the loan.
1. Releases on loan amount shall be in accordance with existing rules but in no case shall any release be more than 90% of the work completed as appraised by the SSS.
2. The full/final release of the loan amount and the completion of the repair and/or improvement shall be within six (6) months from the month of confirmation by SSC of the loan approval.
1. The proceeds of the loan shall be solely for the purpose of house repair and/or improvement, the supervision of which shall be the sole responsibility of the applicant.
2. The applicant shall comply with all loan requirements and execute all supporting papers and/or documents to the satisfaction of the SSS.
3. The applicant shall conform to such changes or modifications as may be made by the SSS on the amount of the loan and/or terms thereof before signing of mortgage of contract.
4. The loan may be cancelled by the SSS, if not availed of within the six (6) months following the month of receipt of the notice of loan approval.
Any unreleased amount may be forfeited and failure to complete the repair and/or improvement shall be a ground for foreclosure.
FILING OF APPLICATION
The filing of application shall be as follows:
For NCR – to be filed at Member Loans Department (MLD), SSS Main Office
For Non-NCR – to be filed at Housing and Acquired Asset Management Section (HAAMS):
• HAAMS – Baguio;
. HAAMS- Tarlac;
• HAAMS – San Pablo;
• HAAMS – Naga
*There is no Visayas or Mindanao branches which will accept application for this loan since this loan is only open to Luzon residents who are SSS members and are affected by the said typhoons.
Interested and qualified SSS member may download these forms in the website of SSS or get this from the branches specified above.
The Application for Direct House Repair and/or Improvement Loan under Office Order No. 2013-038 together with the revised Terms and Conditions and Checklists of Requirements shall be used for the Housing Loan Assistance for the Direct Repair and/or Improvement Loan.
- Application for Direct House Repair and/or Improvement Loan – Annex C.1
2. Checklist of Requirements – Annex C.2.
For any inquiry or concern, iSensey recommends to contact SSS directly. Call or email SSS:
- SS Trunkline No. (632) 8920-6401
- SSS Call Center: (632) 8920-6446 to 55
- SSS Toll-Free No.: 1-800-10-2255777
- SSS Email: email@example.com
Loan application period November 27, 2020 to February 26, 2021. If this will be extended, iSensey will update this post.