MANILA, (PIA) — The Social Security System (SSS) launched a new low-interest pension loan program (PLP) as it urged retirees to ditch predatory “Sangla-ATM” lenders and borrow from the agency instead.
“Sangla-ATM” literally translated as “pawn your automated teller machine card” is an illegal loan scheme, which involves surrendering a borrower’s ATM card as collateral and often carries usurious interest rates, reaching up to 20 percent.
Offering a significantly better alternative, the SSS’s PLP boasts a low annual interest rate of 10 percent for private sector retirees.
“We want our retirees to have access to affordable financing without resorting to high-interest lenders,” SSS President and CEO Rolando Macasaet said. “The PLP offers competitive rates and flexible terms, making it a prudent choice for retiree-pensioners facing financial difficulties.”
Related story:
BSP to cardholders: Avoid ‘Sangla-ATM’ scheme
Key features of the SSS PLP
- Low interest rate: 10 percent per annum, significantly lower than Sangla-ATM rates.
- No ATM surrender: Unlike Sangla-ATM, the PLP doesn’t require collateral.
- No processing or service fees: The program is free to join and use.
- Flexible loan amounts: Retirees can choose loans ranging from three to 12 times their basic monthly pension, with a maximum limit of P200,000.
- Minimum net take-home pension: SSS ensures retirees retain at least 47.25 percent of their total pension after loan payments begin.
Eligibility requirements
- Age: 85 years old or below at the loan term’s end.
- No outstanding deductions: No outstanding loans, overpayments, or calamities assistance package deductions from the SSS pension.
- Regular pension recipient: Receiving regular monthly pension for at least one month with an “Active” status.
- Updated contact information: Must have a valid mailing address and mobile number.
Loan application process
- Apply online through the SSS website or in person at any SSS branch.
- Approval takes three working days for online applications and five working days for in-person applications.
- Upon approval, loan funds are deposited into the retiree’s designated bank account or UnionBank quick card.
Additional information
- A one percent service fee covers the cost of Credit Life Insurance for borrowers.
- The initial monthly payment starts in the second month following loan approval.
By offering a secure and affordable alternative to predatory lenders, the SSS PLP empowers retirees to manage their finances responsibly and avoid falling victim to high-interest loans.
This initiative aligns with the agency’s mission to provide social security protection and promote the financial well-being of Filipino workers and their families. (PIA-NCR)
