1. What is the SSS Calamity Loan Program (CLAP)?
The SSS has launched another awesome initiative to help members throughout the COVID-19 pandemic — the Calamity Loan Assistance Program (CLAP). Qualified applicants can borrow up to one month of their Monthly Salary Credit and pay for it over 2 years + 3 month period at a cheap interest rate of 6% per year.
The best thing about the program is how easy it will be to apply for. For one, application will be online, and very minimal requirements are needed to avail of the money.
It is open to all Filipinos living in the Philippines. The program is open for 3 months from June 15, 2020 until September 14, 2020. An estimate number of 1.74 million people will benefit.
2. How Much Money Can I Borrow from the SSS?
Short Answer: Your Average One Month MSC based on your hulog.
SSS computes the actual loan amount by getting the average of the loan applicant’s monthly Monthly Salary Credit (MSCs) over the last 12 months of employment. To check your average ONE-monthly salary credit (MSC), let’s look at the New SSS Contribution Table to see how much we can get.
See the red box — That’s how much you can borrow based on how much contributions you need to pay:
Example, if you earn Php 14,000.00 or the minimum wage — meaning, your company has deposited Php 1,690.00 total per month — your Monthly Salary Credit is Php 14,000.
So why did they say the Calamity Loan is Php 20,000?
It depends on how much SSS contributions you are paying. You can loan up to Php 20,000 if you paid for the maximum contribution per month.
Take a look at the chart again — If your salary is Php 25,000 and your company deposits a higher Php 2,430.00 per month for your SSS benefits, you get the max Php 20,000 One-Monthly Salary Credit to borrow. That’s why people who pay more can loan more.
3. What are the Special Feature of the SSS’ COVID-19 CLAP vs. other SSS Loans?
Since the impact of COVID-19 is bigger than most other calamities, this version of CLAP has the following benefits:
a) Loan payment term of CLAP is 27 months instead of the usual 24 months. This version of SSS CLAP is inclusive of a 3-month moratorium period. “Moratorium” means that you do not have to pay for the first 3 months. The first payment will be on the 4th month which is great use for borrowers.
b) Interest rate is at a lowered to 6% per year. SSS loan interest are usually 10% so this is a boon to borrowers. The interest charge will only start on the 4th month after your loan get approved. Interest would be computed “on a diminishing principal balance.”
c) Loan payment for COVID-19 calamity loans will begin in the fourth month from their approval dates. No advanced interest will be charged for the said loan.
d) Very minimal requirements are needed to apply. Just complete the Online Application form, and if you’re qualified, you will get the money. Waaaaah!
e) Here’s a disadvantage — If you do not remit your loan payments on time on the due date, you will be charged a 1% penalty per month. So pay on time. Yikes!
4. What are the Qualifications of Successful SSS Calamity Loan Applicants?
a) You must still be a non-delinquent SSS member.
b) Member beneficiaries must have at least 36 monthly contributions, six of which should be posted within the last 12 months before the application.
For example, if you want to loan today on June 16, you need to hulog your SSS contributions 6x from June 16, 2019 to June 16, 2020.
c) You need to have a home or home address within the Philippines REGISTERED in the SSS database. Anyone living in the Philippines can apply since the entire country is in a state of calamity.
d) You have not been granted any final benefit such as total permanent disability or retirement, and
e) You have NO outstanding loans under the Loan Restructuring Program or previous CLAPs.
5. How to Apply for the SSS Calamity Loan Program?
Members must also be registered at the My.SSS web portal on the SSS website at www.sss.gov.ph to apply for the loan. If you’re not yet registered, go to your local SSS branch to register. This site offers a step-by-step guide on how to register in the SSS website.
Quick TIP: The best time to apply for the loan is at 3am in the morning especially in the first few hours of website launch.
Here’s the two things you will need to apply for CLAP:
- Completed Calamity Loan Assistance Program Form — These will be accessed online through the website http://www.sss.gov.ph. Go and log on under eServices to see Calamity Loan. This is the first time SSS will offer Calamity Loans through an online facility so be patient and prepare for bugs in the first few days of opening.
Photo Source: Mattscradle.com
What it looks like now:
2. One (1) Primary ID or Two (2) Secondary IDs — Must have signature and at least one with photo
6. How long do I get my money after processing my SSS Calamity Loan?
SSS salary loans take longer to process at around 2 to 3 weeks, whether you apply online or at an SSS branch. So you have to ensure you have enough money to tide you over before the loan proceeds arrive. I am unsure if it will be faster this time due to COVID-19 but 2-3 weeks is the average lead time to access the cash.
7. How will I receive my money?
a) ATM withdrawal through their Unified Multi-Purpose ID (UMID) card. You need to have your UMID card activated for ATM functionality.
b) Check sent to their preferred mailing address.
c) Citibank or Unionbank Quick Card. Though this site says that applicants only need to identify the bank account where the SSS can deposit the loan.
8. How Can I Pay for the Loan?
For self-employed or voluntary members, monthly installments can be remitted to any SSS branch or any accredited banks and payment centers. For loan payments, only SSS will accept individual loan payments.
For individual members, you can get your Payment Reference Number (PRN) via the two methods:
• Text SSS Service (To register, text SSS REG <SS Number> <Date of Birth> and send to 2600. Note: Charges may apply.)
• Registering in the SSS website under the My.SSS. to generate a PRN online. To register, here’s a quick guide on how to register via My.SSS.
For employed members, SSS CLAP can be paid monthly via salary deduction. If employed, the employer should deduct the loan payment from the payroll and remit the loan amount on behalf of the staff.
IMPORTANT #1: Do NOT delay payment as interest charged is 1% per month for any late payments.
IMPORTANT #2: If the member quits his/her job, the employer should deduct the total remainder of the loan and remit it in FULL to the SSS.
9. How Can I Inquire for More Information Re: SSS Loan?
For more questions, email firstname.lastname@example.org or go to their Facebook page: Philippine Social Security System @sssPH.
The loan will be applied for online and inquiries will also be answered for online.
10. Basis on SSS Calamity Loan Program:
CORRECTION as of June 18:
Kahit na may salary loan, you can still apply for a SSS calamity loan so long as you have at least 36 monthly contributions, six of which should be posted within the last 12 months before the application. For example, if you want to loan today on June 16, you need to hulog your SSS contributions 6x from June 16, 2019 to June 16, 2020.
So pwede kang may salary loan + calamity loan na top up. Walang bawas sa salary loan mo yung calamity loan. Hiwalay yon. Yung may bawas, yung Pagibig Calamity Loan. NOT the SSS Calamity Loan.
NOTE: You will be disqualified for CLAP IF:
1. You already received your final benefit such as total permanent disability, pension or retirement, and
2. You have outstanding loans under the Loan Restructuring Program or previous CLAPs.
Approval is 2-3 days. No need for employer signature. This is direct approved by SSS. Check will be received 2-3 weeks.
Employee can pay for Calamity Loan direct to SSS para on time ang payment. Delayed payment incur 1% per month penalty on top of the 6% per year interest. Kaya dapat magbayad on time.
If may error, just log on again. This program is less than a week old so they are improving the system. Good luck.