SSS cuts calamity loan rate, speeds up release

The Department of Finance (DOF) has approved a lower interest rate and faster activation for the Social Security System’s (SSS) Calamity Loan Program to provide quicker financial relief to members affected by natural disasters.

Finance Secretary and Social Security Commission (SSC) Chair Ralph G. Recto said the move is meant to ease the burden on disaster-hit Filipinos by reducing borrowing costs and slashing processing time.

“Napakabuting balita nito para sa ating mga kababayang nangangailangan ng maagap na tulong pinansyal,” Recto said.

“Kung dati isang buwan bago mo makuha ang loan, ngayon pitong araw na lang. Bukod pa dito, mas pinababa pa natin ang interest para hindi mabigat sa bulsa,” he added.

The interest rate for calamity loans was lowered to 7% per year from the previous 10%, following President Ferdinand R. Marcos Jr.’s directive in May to reduce rates and accelerate aid delivery.

The activation period of the Calamity Loan Program (CLP) was also cut from one month to just seven working days from the date a calamity is declared.

SSS President and CEO Robert Joseph M. De Claro said this move ensures immediate aid for those hit by disasters such as Tropical Storm Crising.

“Following through on the announcement of His Excellency President Ferdinand R. Marcos Jr. last 1 May 2025 on the reduction of interest rates for salary and calamity loans, we proposed and obtained approval of the Social Security Commission, headed by our Chairperson Finance Secretary Ralph G. Recto, to reduce interest rates for calamity loans to 7% per annum from the current rate of 10%,” De Claro said.

This follows the agency’s earlier move to reduce interest rates on salary loans to 8% from 10%.

Members with good credit standing—specifically those who have not availed of penalty condonation in the last five years—are eligible for the new 7% rate.

De Claro also said the CLP guidelines were revised to allow loan renewal after six months, provided the member has no past-due balances.

SSS has enhanced the activation process by requiring its branch and international operations to endorse State of Calamity declarations within two days to the SSS Member Loans Department.

Under the revised program, eligible members may borrow up to PHP20,000, equivalent to one Monthly Salary Credit (MSC), based on the average of the last 12 posted MSCs.

Loan applications must be submitted within 30 days from the date of public announcement in a newspaper of general circulation.

Members must have at least 36 posted contributions—six within the last 12 months—and must be registered in the My.SSS portal.

Applicants must also have no outstanding or restructured loans and must not be disqualified due to fraud or a final benefit claim.

For employed members, employers must be up to date on contributions and loan remittances.

Loan proceeds will be released through members’ active Unified Multi-Purpose ID (UMID) ATM card or a PESONet-enrolled bank account listed in their My.SSS Disbursement Account Enrollment Module (DAEM).

The loan is payable in 24 equal monthly installments starting the second month after loan approval.

A 1% service fee will be deducted from the loan amount.

Late payments will incur a 1% monthly penalty, and unpaid loans beyond the 24-month term will accrue 10% annual interest plus a 1% monthly penalty until fully paid.

“With the issuance of the revised CLP guidelines, SSS will provide emergency financial relief to mitigate impact of natural disasters to members and help get them toward the path of recovery under liberalized terms and conditions,” De Claro said.

In 2024, the SSS released nearly PHP10 billion in calamity loans to over 560,000 members.

For 2025, the agency has earmarked around PHP20 billion to bolster the program’s reach and impact.