Go backs SSS micro-loan plan to fight predatory lenders

MANILA – Finance Secretary and Social Security Commission Chair Frederick D. Go is spearheading a new Social Security System (SSS) initiative to provide affordable, short-term credit to members, aiming to shield them from high-cost informal lending practices.

The proposed SSS Micro-Loan Program is part of the Marcos administration’s broader effort to promote financial inclusion and protect Filipinos from predatory lenders.

President Ferdinand R. Marcos Jr. earlier directed agencies to craft programs offering safer alternatives to informal loans.

“Through the proposed SSS Micro-Loan Program, we are addressing the immediate cash needs of members by offering small, short-term loans at reasonable rates and with flexible repayment options,” Go said.

“This program will help steer members away from loan sharks and other high-cost, predatory lending schemes, while promoting responsible borrowing,” he added.

The SSS plans to partner with digital platforms of participating banks and financial institutions for seamless program delivery.

The loans will range from PHP 1,000 to PHP 20,000, depending on a member’s average monthly salary credit.

Borrowers can choose repayment periods of 15 to 90 days. The interest rate is set at 8 percent per annum (0.67 percent per month), significantly lower than rates typically charged by informal lenders.

Eligible members must be aged 18 to under 65, have at least 12 paid monthly contributions, and have no pending or settled retirement, total disability, or death benefit claims.

Members with existing SSS loans may also qualify, subject to specific program limits.

The SSS is finalizing the program’s implementation details, including systems integration and bank partnerships, with a pilot rollout targeted in the first half of 2026.

“This micro-loan program reflects our continued commitment to strengthening social protection and advancing financial inclusion for all Filipinos,” Go said.

In addition to backing the micro-loan initiative, Go commended the SSS for the rollout of its Emergency Loan Program (ELP), which he described as “a milestone in the Commission’s continuing efforts to deliver better benefits and programs, faster services, and wider coverage for its members.”

“The Department of Finance welcomes the SSS Emergency Loan Program, which offers timely and accessible financial assistance to help Filipinos meet daily needs and begin recovery during challenging times,” he said.

The ELP, which became available following the declaration of a State of National Calamity under Proclamation No. 1077 on Nov. 6, 2025, allows eligible members to borrow between PHP 1,000 and PHP 20,000.

The loan carries a 7 percent annual interest rate and includes a six-month repayment moratorium.

“The emergency loan offers members a better alternative to informal lenders who charge unreasonably high-interest rates, enabling members to focus on recovering from the financial impact of disasters,” Go said.

President Marcos recently approved the extension of the ELP’s December rollout, granting qualified members access to the emergency assistance until either one year from its announcement or the lifting of the State of National Calamity—whichever comes first.