Qualifying Conditions

The SSS Pension Loan is a safe and secured loan privilege for pensioners who will meet the following conditions:

Retiree Pensioners

1. Must be registered in the SSS website with updated contact information and enrolled/existing disbursement account;
2. Must be eighty-five (85) years of age or below at the end of the month of the loan term.

3. Must have no deductions from their monthly pension;
4. Must have no existing advance pension under the SSS Calamity Loan Package;
5. Must be receiving their monthly pension for at least one (1) month and the status of pension is “Active”. If the retiree-pensioner availed the 18 months advance pension, they must be receiving their monthly pension for at least one (1) month;
6. Must not have been disqualified due to fraud committed against the SSS.

Loan Details

Retiree Pensioners

Loanable Amount

1. The loanable amount shall be the Aggregate Monthly Pension, multiplied by 3, 6, 9, or 12 months, at the option of the borrower, but not to exceed the maximum limit of Php300,000.00, with fixed loan terms, as follows:
   

   Option	Loan Amount	Repayment Term
   1	3 × Aggregate Monthly Pension	6 months
   2	6 × Aggregate Monthly Pension	12 months
   3	9 × Aggregate Monthly Pension	24 months
   4	12 × Aggregate Monthly Pension

   Dependent’s pension, if any, is not included in the computation of the loanable amount.

2. The loanable amount and loan term shall take into consideration the Net Take Home Pension (NTHP), which must be at least 40% of the Aggregate Monthly Pension.

In case the loanable amount will not satisfy the 40% NTHP requirement, said amount shall be recomputed to result in a monthly amortization equivalent to the Aggregate Monthly Pension less the required NTHP.

Interest Rate and Service Fees

1. The PL shall incur an interest of ten percent (10%) per annum until fully paid, computed on the diminishing principal balance, which shall become part of the monthly amortization. Any remaining principal balance after the loan term shall continue to incur interest of 10% per annum until fully paid.
2. A Service Fee of two percent (2%) of the loan amount shall be charged and deducted from the PL proceeds.
3. Pro-rated interest at the rate of ten percent (10%) per annum from the date of PL granting up to the end of the month prior to the first amortization month shall be deducted in advance from the PL proceeds.

Fees and Charges of Disbursing Bank

Any transaction fees charged by the disbursing bank shall be borne by the borrower through deduction by the disbursing bank from the PL proceeds.

Disbursement of Pension Loan Proceeds

The proceeds of the loan shall be released through Electronic Funds Transfer Facilities and shall be credited to the borrower’s existing pensioner disbursement account, or to any other disbursement account enrolled through the DAEM per applicable policies and guidelines.

Monthly Amortization

1. The monthly amortization of the PL shall be deducted from the Aggregate Monthly Pension of the borrower.
2. The 1st monthly amortization shall become due on the 2nd month after the loan was granted.

Credit Life Insurance

1. The PL shall be covered by a CLI with the SSS as the sole designated beneficiary. The insurance premium shall be borne by the borrower through a one-time deduction from the loan proceeds. In the event of death of the borrower before full payment and end of the loan term, the PL balance shall be considered fully paid and shall not be deducted from the death benefit/s of the rightful beneficiary/ies, if any.
2. The insurer shall cover the PL balance of the borrower and shall pay SSS the said amount. The PL balance not covered by insurance shall be deducted from the borrower’s SSS benefits or member loan overpayment proceeds payable to the borrower or to their rightful beneficiary/ies, if any. The PL balance not covered by insurance shall refer to loan balances that cannot be claimed from insurer due to reason/s, such as but not limited to, the following:
   1. Death of borrower falls after the end of the loan term
   2. Fraudulent PLs
   3. Loan balances deemed due and demandable as a result of cancelled pension due to:
      1. re-adjudication of benefit claims;
      2. re-employment/resumption of self-employment in the case of retiree-pensioners; and,
      3. remarriage or cohabitation/”live-in” relationship in the case of surviving spouse pensioners.

How to Apply

1. Log in to your My.SSS Account.
2. Click Loans > Pension Loan under “Loans Tab”.
3. Choose the disbursement account where you want to receive the proceeds of your Pension Loan. If you have not yet chosen an account for your Pension Loan disbursement, the “Next” button will remain disabled.
4. Choose your preferred Pension Loan amount from the computations displayed on the screen by clicking the applicable radio button at the bottom and click “Next” button to proceed with the next page.
5. Check all the details of your application. Then click the “I have read and agree to the Terms and Conditions” box. This signifies that you agree with the amount of Pension Loan as stated in the Disclosure Statement, the deduction of your monthly loan amortization from your monthly pension and to the Terms and Conditions of the Pension Loan Program.
6. The Terms and Conditions of the Pension Loan Program shall be displayed. Click the tick box before the “I have read and properly analyzed the Disclosure Statement.” Then click “Next”.
7. Click the Disclosure Statement and download or print a copy.
8. Close the Disclosure Statement page to activate the “Submit” button. Kindly review the summary of the chosen term of loan, including applicable charges, bank to be credited and the Acknowledgement, Authorization and Agreement clause. Click the tick box before “I have read and agree to the statement above”. Then click “Submit”.
9. A notification screen shall be displayed regarding the successful submission of your loan application.
10. The same notification shall also be sent to your registered email address.

Loan Renewal

The pension loan borrower shall be allowed to renew the loan only after full payment of the current loan.