SSS disburses P170 billion loans, expands programs

The Social Security System (SSS) has amassed a loan portfolio of approximately P170 billion year-to-date, with salary loans constituting the bulk of this amount. SSS President and CEO Robert Joseph Montes de Claro stated that the portfolio remains well within the agency’s lending limit, allowing for potential expansion of its lending programs. “Our loans currently stand at around P170 billion. So, even if you add the micro loans and the energy sustainability loans, we are still well within the balance of the portfolio that we are allowed by law to lend, which is up to 25 percent of our Investment Reserve Fund (IRF),” he explained. The SSS has a lending capacity of about P300 billion for its members, equivalent to 25 percent of its IRF, which is projected to reach P1.5 trillion by year-end. According to SSS Senior Vice President of Lending and Asset Management Group Pedro Baoy, the current loan portfolio has grown by about five percent year-on-year, a trend that aligns with the increase in membership. Meanwhile, De Claro noted that the agency has earmarked approximately P40 billion for its SSS Micro Loan Program, also known as SSS LoanLite, which aims to provide an alternative to high-cost informal lenders. To date, P1.81 billion has been disbursed to about 146,000 members. “For the micro loan program, considering the behavior of the loan takeouts for the first month, I think if we can reach P10 billion by the end of 2026, we would consider the program very successful,” he said. Qualified members can apply for loans ranging from P1,000 to P20,000, depending on the average of their 12 latest Monthly Salary Credits. The program carries an interest rate of eight percent per annum. Furthermore, SSS is preparing about P40 billion for the energy sustainability loan program, which will offer loans from P200,000 to P400,000, payable over four to seven years. This program is expected to initially cover around 100,000 homes. “We are also preparing the funding to ensure that once we release the program in the first quarter of next year, we can accommodate all members that qualified,” De Claro added. In a related development, SSS has released nearly P20 billion under its emergency loan program as of September 20, out of the P26.68 billion allocated. The emergency loan program is set to remain available until April 30, 2027.