The Social Security System (SSS) recently launched their Pension Loan Program (PLP) at 20 branches across the country, including Iloilo Central, located in the City Proper district of Iloilo City.
“For pilot implementation, PLP will be offered in [the] 20 branches serving the highest number of retiree pensioners,” explained SSS Chief Executive Officer Emmanuel F. Dooc. “All 171 branches of SSS will accept PLP applications as soon as our system is ready for the full-scale implementation.”
Eligible applicants include retiree pensioners who will be 80 years of age or below by the end of the loan term with no outstanding loan balance or overpayment to SSS, no advance pension, and have been receiving their regular monthly pensions for at least six months.
Those eligible can borrow between two and six times their basic monthly pension with an additional P1,000 benefit. The loan will incur an interest rate of 10 percent per annum based on a diminishing principal balance. Repayment is payable in a three, six, or 12 month period, depending on the multiple of the loan amount, and will be deducted from the borrower’s monthly pension.
According to Dooc, the program was introduced in response to clamor from senior citizens borrowing from institutions offering high interest rates.
Around P10 billion has been set aside to fund the program./WDJ