SSS offers Conso Loan program, waives penalties

The Social Security System (SSS) has launched the Consolidation of Past Due Short-Term Member Loans with Condonation of Penalty (Conso Loan) program.

This initiative aims to assist members with past-due loans in regaining their good standing with the SSS.

In a recent statement released by SSS, Rizaldy T. Capulong, SSS Executive Vice President for Investments Sector, explained that the Conso Loan program consolidates the principal and interest of a member’s past-due short-term member loans into one loan.

All unpaid penalties will be waived upon full payment of the consolidated loan.

Members with outstanding obligations in salary, calamity, emergency, and restructured loans, including the Salary Loan Early Renewal Program (SLERP), are eligible for the program.

Capulong encouraged members to take advantage of this opportunity to settle their past-due loans without penalties through an easy payment scheme.

To qualify for the program, members must:

• Have a past-due short-term member loan at the time of application
• Not have been granted any final benefit such as permanent total disability or retirement
• Not have been disqualified due to fraud committed against the SSS
• Have an active My.SSS account

Applications for the Conso Loan program can be submitted online through the My.SSS account.

Members can choose to pay their consolidated loan through a one-time payment within 30 calendar days after receiving the approval notice or opt to pay through installment.

For the installment scheme, members must pay a down payment equivalent to at least 10% of the consolidated loan within 30 calendar days after receiving the approval notice.

The remaining balance can be paid for up to 60 months, with the length of the installment term depending on the amount of the unpaid loan.

Capulong noted that if a member fails to meet the payment terms based on the consolidated loan agreement, SSS will deduct the outstanding balance of the consolidated loan from the short-term benefits (sickness, maternity, or partial disability benefit claims) and final benefits (permanent total disability, death, retirement), as authorized by the Social Security Commission (SSC).

As of December 2023, more than half a million members have availed of the Conso Loan program, and SSS has already condoned more than P7.3 billion loan penalties, the statement said.