When can I apply for the SSS Loan Restructuring Program?

You can apply for a loan restructuring for your short-term loan from November 15, 2021 until February 14, 2022. For housing loan restructuring, member-borrowers can apply from November 22, 2021 until February 22, 2022.

Will I qualify for the SSS Loan Restructuring Program if I’ll turn 65 years old within the repayment period?

Yes, but you’ll need to make a full one-time payment for your loan.

What will happen if I fail to pay my restructured loan within the agreed terms?

For restructured short-term loans, the unpaid principal/balance within the six month period will become part of a new restructured loan (Restructured Loan 2). The RL2 will incur a 10% interest rate per annum until it’s fully paid.

What if I fail to settle the amount of my consolidated loan within 30 days?

In case you can’t settle the full amount or the 50% down payment, you can submit a condonation application again before the last day of the program in February 2022.

SSS Loan Restructuring Program: What is It and How to Apply?

Q: What is the SSS Loan Restructuring Program?

The SSS Loan Restructuring Program (LRP) allows Filipinos with unpaid SSS loans to settle their outstanding balance under a restructured repayment term. Qualified SSS members can avail of the program for three months starting November 15, 2021.

Q: What is considered a past due SSS loan?

Any SSS loan account unpaid for at least six months will be considered past due and will qualify for loan condonation.

If you have an SSS loan that hasn't been paid for quite a long time, this is your chance to settle it. The SSS Loan Restructuring Program is one of the debt relief schemes offered by the Social Security System to help members settle their unpaid loans without penalties.

This debt relief program is also to help members who have been affected by the pandemic. It covers SSS loans, such as salary loans and short-term member loans.

Here’s everything you need to know about the SSS loan restructuring program for this year.

What is the SSS Loan Penalty Condonation Program?

The SSS Condonation Program, simply called Conso Loan, allows Filipinos with unpaid SSS loans to settle their outstanding balance under a restructured repayment term.

The SSS loan condonation program, which started on October 4, 2022, is officially known as the Consolidation of Past Due Short-Term Member Loans with Condonation of Penalty.^[1]

This SSS loan restructuring program makes it easier to pay back what you owe. In this setup, the SSS combines the loan principal and the interest into one consolidated loan. On the other hand, the unpaid penalties will be consolidated and condoned once you fully pay the consolidated loan.

How Does the SSS Loan Restructuring Program Work?

With the current SSS Loan Restructuring Program, member-borrowers are given two payment options. Each scheme comes with conditions and benefits.

Check out this table to learn more:

Payment Option	One-Time Payment	Installment term
How it works	Pay the consolidated loan in full within 30 days after receiving the approved Consolidation Loan Program application.	Give a downpayment of the consolidated loan amount within 30 days from the receipt of the notice of approval of the Consolidated Loan Program application. A higher percentage of the consolidated loan may be considered a down payment. The remaining balance will be payable in equal monthly amortization.
Benefit	A consolidated loan amount of up to ₱5,000 shall be settled on a one-time payment.	Downpayment of at least 10% of the consolidated loan amount. 10% interest rate per annum will be charged on a diminishing principal balance and shall be amortized over the approved term of the consolidated loan until fully paid. Late payment of the monthly amortization will have a penalty of 1% per month after the due date until fully paid.
Condition	100% of the consolidated penalties will be condoned once you fully pay the consolidated loan within the given payment period.	Penalty that’s proportionate to the downpayment percentage will be condoned once you fully pay the required downpayment within the approved period. The remaining penalty amount will be fully condoned after you fully pay the consolidated loan amount within the approved

Under the SSS Conso Loan's installment plan, the remaining balance is payable in six to 60 monthly amortization based on the loan range below:

Consolidated Loan Remaining Balance	Maximum Term
Above ₱5,000 to ₱10,000	6 months
₱10,001 to ₱18,000	12 months
₱18,001 to ₱36,000	24 months
₱36,001 to ₱54,000	36 months
₱54,001 to ₱72,000	48 months
More than ₱72,000	60 months

Why Should You Apply for the Loan Penalty Condonation?

Any unpaid SSS loan will be deducted from your retirement, death, or disability benefits. The deduction will be huge if you've stopped making loan payments for many years. So while there's a chance to settle your loan through the SSS loan penalty condonation this 2023, take advantage of it to ensure you'll receive your final SSS benefits in full.

Availing of the SSS Condonation Program this 2023 also enables you to clear your loan records with the SSS. It will certainly help improve your credit score because of the reduced debt.

Who Can Avail of the SSS Loan Restructuring?

The SSS Loan Penalty Condonation Program is applicable to borrower-members who are currently paying off the following loans:

Salary Loan, including the Salary Loan Early Renewal Program (SLERP)
Calamity Loan
Emergency Loan
Restructured Loan
Other short-term member loans as may be determined by the SSS

SSS member-borrowers also need to meet certain conditions to be eligible for the loan restructuring program:

Have a loan account/s that is/are past due as of the time of the application for a consolidated loan
Have not been granted any final SSS benefits, such as permanent total disability or retirement
Have not been disqualified because of fraud against the SSS
Have an active My.SSS account

How to Apply for the SSS Loan Restructuring Program Online in 2023

All member-borrowers who want to apply for loan penalty condonation from SSS can only do it online. To apply, just follow the steps below:

Have an active My.SSS account. If you still don't have one, register for an SSS account online.
Log in to your My.SSS account.^[2] Under “Loans,” click “Apply for Consolidation of Past Due Short-Term Member Loan with Condonation of Penalty Program.”
On the next page, you’ll find your consolidated loan information and the qualified short-term member loans. Under “Preferred Conso Loan Payment Term,” choose your desired payment term.
Agree to the Conso Loan Program Terms and Conditions and click “Proceed.”
On the next page, you’ll see the summary of your consolidated loan application. Once you’ve double-checked all the details, click, “Submit.”
On the last page, you’ll get your Loan Account Number and Payment Reference Number (PRN).^[2] A copy of the notice of approval will be sent to your email address.

SSS Loan Restructuring Program FAQs

Still got some questions on the SSS condonation program for 2023? Check out the following:

1. What is considered a past-due SSS loan?

According to the SSS, “past due” means that the loan has an unpaid obligation composed of the principal, interest, and penalties equal to more than three monthly amortizations. It may also mean that the loan has a remaining unpaid balance before it matures.

Did you miss the chance to avail of any past SSS loan penalty condonation programs like the PRRP 5 (Pandemic Relief and Restructuring Programs)? The SSS Conso Loan is an opportunity for your to settle your unpaid SSS loan this 2023. Watch the video below for more details.

2. How much is the interest rate of the SSS Consolidated Loan?

The loan under the SSS loan penalty condonation program is charged a 10% interest rate on a diminishing principal balance. This is amortized over the consolidated loan term until it's paid off.

Also, take note that late payment of your monthly amortization will incur a penalty of 1% per month after the due date until fully paid.

sss loan restructuring program - interest rate and late payment penalty

3. How to pay my SSS loan condonation account?

You can pay your SSS consolidated loan over the counter at the following payment partners:

RCBC
Security Bank
Union Bank of the Philippines
Bayad

For convenience, you may choose to pay your consolidated loan via popular online payment platforms, such as GCash, Maya, and UnionBank mobile app.

Download the UnionBank Online App!

The UnionBank Online Banking app is available on the App Store, Google Play, and Huawei App Gallery. You can download it via the links below:

4. What will happen if I miss my due date? Will there be a penalty?

If you choose installment payment for your restructured loan and you miss the due date, you’ll be charged a penalty of one 1% per month after the due date until fully paid.

5. What are the grounds for loan default?

Your consolidated loan shall be in default if it meets any of the following criteria:

You fail to pay in full the agreed one-time payment or downpayment within the approved period.
You fail to pay your obligation equivalent to more than six accumulated monthly amortizations.
You fail to pay in full the installment plan within the approved term.
You commit any fraudulent acts or violations against any guidelines and regulations of the SSS.

If you want to avoid loan default, you can apply for a low-interest personal loan from Metrobank and use the proceeds to completely settle your SSS loan.

The Metrobank Personal Loan’s monthly add on-rate is as low as 1.25%. You can borrow any amount from ₱20,000 to ₱1 million and pay in 12, 18, 24, or 36 monthly installments.

6. What will happen if I default on my consolidated loan?

In case of loan default, the outstanding balance of the consolidated loan will be collected from you through the deduction of any benefit due to you or your beneficiaries. Affected benefits include short-term benefits (sickness, partial disability, and maternity) and final benefits (retirement, total disability, and death).

Keep in mind that your unpaid balance will continue to accrue interest and penalties until you fully settle it.

Read more:

7. Can I apply again if I defaulted on my consolidated loan?

Yes! In case of loan default, you can apply again for the SSS restructuring program. That way, you’ll be able to enjoy a penalty waiver. If you apply, the SSS will close your defaulted account and then set up a new consolidated loan account.

8. Can I apply for a new SSS Conso Loan?

The SSS will allow you to apply for a new loan program after three months from the date of full payment of your consolidated loan. In case you have defaulted on your loan, you’ll be allowed to apply for a new loan after two years from the date of full payment of your defaulted consolidated loan.

Final Thoughts

The SSS Loan Restructuring Program is a relief provided to member-borrowers who have been having trouble settling their obligation. This program will help you fix your delinquent status with the SSS and make it easier to apply for other SSS benefits again in the future. In case you falter after your consolidated loan application, you’re given a chance to apply again.

Although the repayment terms may still be a challenge for some members, prioritize paying your SSS loan, so you can enjoy your benefits in full and easily make a claim when the need arises.

Looking for Other Debt Consolidation Options? Consider These Personal Loans

No need to search elsewhere if you need to borrow money from a reputable bank or lender. Right here at Moneymax, you can easily compare personal loans in the Philippines for free. Check out your options below!

Provider	Loan Amount	Monthly Add-on Rate	Loan Term	Minimum Annual Income	Approval Time
UnionBank Personal Loan	Up to ₱2 million	26.9% per annum	12 to 60 months	₱250,000	As fast as 5 minutes
UNO Digital Bank Personal Loan	₱10,000 to ₱500,000	1.79% per month (corresponds to annual contractual rates or annual percentage rates ranging from 35.78% to 37.54%)	Six to 36 months	₱240,000	Five to seven banking days
Metrobank Personal Loan	₱20,000 to ₱2 million	1.25% to 1.75%	36 months	₱350,000	Seven banking days
BPI Personal Loan	₱20,000 to ₱3 million	Maximum annual contractual rate of 28.67%	12 to 36 months	Inquire with BPI	Five to seven banking days
Tonik Credit Builder	₱5,000 to ₱20,000	4.84%	Six to 12 months	Inquire with Tonik	Two banking days
Tala	₱1,000 to ₱25,000	0.43% daily	Up to 61 days	None	Five minutes to 24 hours
HSBC Personal Loan	₱30,000 to ₱500,000	0.65%	Six to 36 months	₱168,000	Five to seven banking days
CIMB Personal Loan	₱30,000 to ₱1 million	As low as 0.83%	12 to 60 months	₱180,000	One to two banking days
Maybank Personal Loan	Up to ₱1 million	1.3%	Up to 36 months	₱300,000	Inquire with Maybank
RCBC Bank Personal Loan	₱50,000 to ₱1 million	1.3%	Six to 36 months	₱360,000	5 to 7 banking days
PSBank Personal Loan	₱20,000 to ₱250,000	42.88% Effective Interest Rate per annum for a 24-month term (term loan) 41.29% Effective Interest Rate per annum for a 36-month term (Term Loan) 34.49% Effective Interest Rate per annum for 12 months (Revolving Loan	24 or 36 months	₱180,000	Five to nine banking days