Short-term Member Loan Penalty Condonation Program (STMLPCP)

In the midst of the pandemic, Social Security System (SSS) members are relying on SSS loan offers such as salary loan and calamity loan, in order to somehow provide short-term relief to their financial burdens. However, while the pandemic is still ongoing, non-payers of the aforementioned loans worsen their situation by incurring penalties. To provide assistance to its affected members and pensioners, the SSS have introduced a new condonation and restructuring loan program called Short-Term Member Loan Penalty Condonation Program (STMLPCP) that will allow members with unpaid SSS loans to settle their outstanding balance under a restructured repayment term.

Loan restructuring makes it easier to pay back what you owe to the SSS since you’ll have to pay only the overdue principal amount plus interest. Members may also avail either one-time payment or installment term. After the repayment of the restructured loan, it is no longer necessary to pay the penalty fees accumulated after years of non-payment.

Short-Term Member Loans shall include the following:

  • Salary Loan
  • Calamity Loan
  • Salary Loan Early Renewal Program (SLERP)
  • Emergency Loan
  • Restructured Loans under the Loan Restructuring Program (LRP) implemented in 2016 to 2019.

Under Circular No. 2021-014 of SSS, the availment period for the condonation program is up to three months commencing on November 15, 2021. The program is eligible or open for all: 

  1. Member-borrowers with past due or loan that is delinquent for a period of at least six months as of the first day of the condonation period;
  2. Member-borrowers who are under 65 years old at the end of the installment term, who have not been granted any final benefit; and
  3. Member-borrowers who have not been disqualified due to fraud committed against the SSS.

The details above are simply a summary of the program. For the complete guidelines, members are advised to check the SSS Circular No. 2021-014. All members, except for dead, disabled or retired, who can only file through over-the-counter filing, must apply for the penalty condonation program through the SSS website by accessing their personal account.