SSS set P500-million emergency loan fund for displaced members

March 18, 2009 by Roy
Filed under: Announcement, Business news, Entrepreneurship, finance, Funds Sources, Government, Money, self-help 

The Social Security System (SSS) has set aside an emergency loan fund of P500-million for the displaced workers of private companies who have closed down due to the effect of the recession.

SSS president and chief executive officer Romulo Neri said that the agency has already opened the emergency loan window and displaced workers can now for a loan of up to P15,000 from the emergency fund.

However, only those who lost their jobs from January 1, 2009 are qualified for the emergency loan.

Applicants should be members in good standing and that they have paid at least 12 months in membership contributions before they lost their jobs. They should not have been granted previously of refunds of contributions, retirement or total permanent disability benefits, and that they should not have any fraudulent transactions with the agency.

Displaced employees who seek to start a business can use the loan proceeds to start a home business.

A member can avail of the the maximum allowable loan amount which is equivalent to two month’s of the employee’s highest monthly salary for the past six months, and not exceeding P15,000.

Members are required to present a certification from their former employer, validated by the Regional Director of the Department of Labor and Employement (DoLE) covering the company as proof of separation from employment.

The loan will have a grace period of 12 months and payment of the amortization of 24 monthly payments will start on the second year. Interest rate is at 10-percent per annum, with the first year’s interest deducted in advance from the principal. Interest for the second and third years will be included in the monthly amortizations. A penalty of one percent per month will be imposed on those who will fail to comply.


Neri said the funds will be sourced from the Employees Compensation Commission (ECC) of the DoLE since their agency has already reached the maximum amount that it can loan out, which is 10 percent of its reserves.

You can visit the neareast SSS office in your area to inquire about the program. Be sure that you are qualified and have your documents ready so as not to waste any time.

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Comments

8 Comments on SSS set P500-million emergency loan fund for displaced members

  1. Snow on Wed, 18th Mar 2009 10:46 pm

    2. P15,000 is such a small amount if a person is out of job for 6months to 1 year. But anyway, it’s better than nothing.

    Pero tutal, pera rin naman yan nung mga members – dapat mas lenient sila sa loan entitlement. :(

    Yun lang po. :)

    Snow’s last blog post..Farewell Natasha Richardson (1963-2009)

    [Reply]

  2. Dinah on Thu, 19th Mar 2009 6:53 pm

    3. i wonder what business you can start with a P15K capital. a sari-sari store maybe? or a tindahan ng ulam or the likes? pero sabi nga ni snow, its a lot better than nothing.

    Dinah’s last blog post..Danniel Noel: The Graduate

    [Reply]

  3. Roy on Thu, 19th Mar 2009 6:57 pm

    4. maliit nga, but considering all the number of SSS members, mas magandang mas maraming makinabang

    for business, it’s better to start small. marami ka nang option for that amount, kailangan lang magtiyaga para mapalaki.

    my main concern here actually is the process of availing. OWWA is giving 50k loan to OFW, pero balita ko pahirapan daw ang pag-avail :(

    [Reply]

  4. pinoynetworker on Fri, 20th Mar 2009 2:15 am

    5. I thought I saw Neri in the news before saying that they won’t give loans to SSS members since hindi raw kakayanin sa dami ng mangungutang… talk about social (in)security… I guess he was advised to do otherwise…

    As for business, pwede na yang 15K to start something… meat processing won’t need that much to start (I think) … pero kung gagastusin lang mabilis maubos yan…

    [Reply]

    Roy Reply:
    March 20th, 2009 at 3:00 am

    I was surprised too. that was the news the day before this came out, maybe he is included in the admin’s senate line-up :)

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  5. Free entrepreneurship training from DTI | Roysville on Wed, 25th Mar 2009 7:33 pm

    6. [...] on the know-hows of business. This is most specially timely, to those who have availed of the P15,000 loan from SSS or the P50,000 from [...]

  6. Hazel on Tue, 2nd Jun 2009 5:21 am

    7. We inquire SSS recently regarding the 15k emergency loan to displaced workers. The SSS head Janice Caballes said they don’t have any guidelines regarding this matter…is it true that they don’t have the guidelines yet? It’s very clear on your blog about the guidelines and I’m very much qualified for the said emergency loan. Marami kaming naniniwala sa announcement ng SSS and we are looking forward that the loans will be granted soon. Can you help us?… Pabalik-balik kami dun sa SSS, palagi sinasabi wala pa daw silang natanggap na guidelines. Ano ba ang totoo?

    [Reply]

  7. Roy on Tue, 2nd Jun 2009 6:30 am

    8. Hi Hazel,

    thanks for your comment. unfortunately, I’m connected with the agency, I’m just re-echoing what I’ve read in the news.

    Although that is not really surprising, as sometimes guidelines aren’t (often) always distributed to the frontliners.

    I’ll try to find the link where I read the news (I thought I put it in the post), and put it here for reference.

    meanwhile, if you could get past the frontliners. it’s better to ask the officers and the supervisors because maybe they know better.

    you might also want to check their website.

    thanks!

    [Reply]

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