MANILA, Philippines — Finance Secretary Ralph Recto has approved lower interest rates and a faster release process for the Social Security System (SSS)’s calamity loan program to provide quicker relief assistance to Filipinos affected by disasters.
In a statement on Wednesday, the SSS said it would issue revised guidelines on its program, which includes a reduced interest rate of seven percent from the previous 10 percent.
The lowered interest rate applies to SSS members with a strong credit history or those who have not received any penalty condonation within the last five years, ensuring the benefit is given to financially responsible and compliant applicants.
This comes as the government ramps up relief operations for areas devastated by Typhoon Crising intensified by monsoon rains, which have displaced nearly half a million families and caused widespread damage across multiple regions nationwide.
“This is very good news for our fellow Filipinos in need of urgent financial assistance. Before, it took a month to receive the loan, now it only takes seven days. On top of that, we’ve also lowered the interest rate to make it more affordable,” said Recto, who is also Social Security Commission ex-officio chair.
Members may renew their calamity loans after six months, provided they consistently pay their dues on time under the existing calamity loan program, encouraging responsible repayment among qualified borrowers.
The loan is payable over two years in 24 equal monthly installments, starting the month after approval, with a one percent service fee deducted from the total loanable amount.
To ensure transparency and efficiency, loan proceeds will be released through members’ active unified multipurpose ATM cards or accounts in any PESONet-participating bank, with interested applicants given 30 days to avail of the program.
Aside from SSS, the Government Service Insurance System has also opened its emergency loan program for members affected by the typhoon.
The loan assistance is intended to help government workers and pensioners recover from the impacts of both weather disturbances. Covered areas include Cavite, Quezon City, Umingan in Pangasinan and Calumpit in Bulacan.
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