Perhaps you have an outstanding loan with the Social Security System (SSS) that you have not repaid for several months or even years. Naturally, you might be worried that your unpaid SSS loan has ballooned to such a large amount that you’ll have a hard time paying off the full balance. Worry no more because the SSS is offering its members the chance to settle their outstanding loan obligations without penalties and at favorable installment terms! Read on because we’ll teach you how to apply for SSS loan condonation online.
Last November 2021, the SSS announced the Short Term Member Loan Penalty Condonation Program (STMLPCP) which is part of the Pandemic Relief and Restructuring Program (PRRP) of the agency. Short-term loans that are included in the SSS loan condonation program are:
- Salary Loan;
- Calamity Loan;
- Salary Loan Early Renewal Program (SLERP);
- Emergency Loan; and
- Restructured Loan under the Loan Restructuring Program (LRP) implemented in 2016 to 2019.
Through the SSS loan condonation program, members have the opportunity to consolidate their loans and repay their outstanding loan obligations. Although the principal and the interest remain due and payable, the accrued penalties will be condoned or forgiven. Members can opt for a one-time payment or a monthly installment plan payable for six months.
Applying for SSS loan condonation can be done online using your computer or mobile phone, so you don’t need to visit the SSS branch. All you need is an active My.SSS account. After successful submission and approval of your loan condonation application, you will need to pay your consolidated or restructured loan within its prescribed payment period which is 30 days for one-time payment and six months for installment.
The SSS loan condonation program is open starting September 30, 2022.
Who Are Eligible for the SSS Loan Condonation Program?
The following SSS members are eligible to apply for the Short Term Member Loan Penalty Condonation Program (STMLPCP):
- Member-borrowers with past due loans for at least six (6) months as of the start of the condonation period;
- Member-borrowers who are less than 65 years old at the end of the installment term (for installment payment);
- Member-borrowers who have not been granted any final benefit (e.g. permanent total disability or retirement);
- Member-borrowers who have not been disqualified due to fraud against SSS;
- Member-borrowers who will file their final benefits application for retirement or permanent total disability, whose contingency date is on or before the last day of the availment period of the SSS loan condonation program. The final benefit claim must be filed during the availment period; and
- Heirs and beneficiaries of deceased member-borrowers who will file death benefit applications, whose contingency date is on or before the last day of the availment period of the loan condonation program. The death benefit claim must be filed during the availment period.
SSS Loan Condonation Online Application Step-by-Step Process
All SSS member-borrowers must apply for the loan penalty condonation program through the SSS website using their My.SSS account. Exceptions are members with death, disability and retirement claims who must apply for loan condonation over-the-counter at SSS branches.
Step 1: Login to Your My.SSS Account
Open the My.SSS member portal on your browser and login to your account. If you don’t have a My.SSS account yet, read this article to learn how to register.
Step 2: Apply for Loan Penalty Condonation
Once you’re logged in to your My.SSS account, click “E-SERVICES” and then on the dropdown menu, click “Apply for Loan Penalty Condonation (STMLPCP/PRRP5).”
You’ll be taken to the page for the application for Short-Term Member Loan Penalty Condonation Programs (STMLPCP). On this page, you can view your consolidated loan details and statement of loan balances.
Step 3: Select Your Preferred Payment Term
The next step is to select your preferred term. The default payment term is “One-Time Payment,” but if you want to pay your SSS loan in monthly installments, click the dropdown field for “Preferred Term” and select “Installment.”
SSS members who are already 65 years old or will turn 65 years old in the next 6 months are only qualified for one-time payment.
If you choose to pay on installment, you will be required to pay a 50% consolidated loan downpayment. Partial or staggered payments of the consolidated loan amount are not allowed even if the required payment is made within the 30-day prescribed period. One-time payment is required for the 50% downpayment.
The remaining 50% of the loan amount or the restructured loan will be payable in six (6) equal monthly installments starting from the month following the 30-day downpayment period. The restructured loan is subject to a 3% interest rate per annum (year) computed on a diminishing principal balance during the 6 months payment term.
Take note that a consolidated loan amount of up to ₱5,000 will be eligible only for one-time payment, based on SSS Circular No. 2022-022.
A penalty of 1% per month will be charged against unpaid amortizations of the restructured loan after its due date during the 6 months payment term.
Step 4: Review and Submit Your Application
After selecting your payment term, take the time to review your SSS loan condonation application including the terms of your payment. Take note of your payment particulars such as loan amount, amount due, terms in days or months, and due date.
Consolidated Loan (One-Time Payment or 50% Downpayment)
- Loan Amount – The total amount of your loan (or the 50% downpayment if payable through installment).
- Amount Due – The amount that you will have to pay before the due date.
- Terms in Days – The number of days to pay your consolidated loan.
- Due Date – The last day or deadline to pay your loan.
- Condonable Penalty – The loan penalty amount that will be condoned or forgiven after full payment of the consolidated loan.
Restructured Loan (50% Installment)
- Remaining 50% Loan Amount – The total loan amount payable in installments.
- Monthly Due – The amount that will need to be paid every month.
- Terms in Months – The number of months to pay your restructured loan.
- First Amortization Month – The month when your amortization starts.
- First Amortization Due Date – The deadline to pay your first monthly amortization.
- Last Amortization Due Date – The deadline to pay your last monthly amortization.
- Interest Rate P.A. – The interest rate per annum (year) computed on a diminishing principal balance.
- Condonable Penalty – The loan penalty amount that will be condoned or forgiven after full payment of the restructured loan.
Also take the time to read the Terms and Conditions and the Promissory Note which you can access by clicking the corresponding plus (+) icon. These documents will also be sent to you through email after approval of your application.
Finally, read the Certification and Undertaking section and then click “AGREE.”
A popup will appear with the message: “Are you sure you want to submit this Short-Term Member Loan Penalty Condonation Application?”
Click “SUBMIT” to proceed with your application. If you’ve changed your mind, click “CANCEL” and your application will not be submitted.
Step 5: Your Loan Condonation Application Has Been Approved
Congratulations! If all goes well, your SSS loan condonation application will be approved instantly. Take the time to read the Notice of Approval and then click “CONFIRM.”
Your payment reference number (PRN), amount due and due date can be accessed by clicking “PRN – LOANS” on the main menu bar. Use your PRN when paying your SSS loan through SSS-accredited payment partners and online payment apps such as GCash.
You will also receive an email along with documents pertaining to your SSS loan condonation application such as the terms and conditions, promissory note, statement of loan balances, and notice of approval. Refer to these documents or login to your My.SSS account if you have any questions about your application for SSS loan condonation.
How to Pay Your SSS Consolidated Loan and Monthly Amortizations
Now that you’ve been approved for SSS loan penalty condonation, it’s time to pay your consolidated or restructured loan before the scheduled due date. You can make short-term loan payments through the following accredited payment partners:
- Bayad Center
- CashPinas
- Partner Rural Bank
- Rizal Commercial Banking Corporation (RCBC)
- Rural Bank of Lanuza Inc.
- Security Bank Corporation
- SM Mart Inc.
- Union Bank of the Philippines
If you want to pay your SSS loan online, you can use your online banking account or an electronic wallet app such as GCash or PayMaya. Check out the mini-tutorials below on how to pay your SSS loan using GCash, PayMaya and UnionBank mobile app.
How to Pay Your SSS Loan Using GCash
- Open the GCash app and login using your MPIN.
- Tap “Pay Bills” on the home screen.
- Select “Government.”
- Select “SSS Loans – RTPL.”
- Enter the following payment details:
- PRN – Enter the payment reference number (PRN). You can find the PRN in your My.SSS account.
- Account Number – Enter your Loan Account Number which you can find in your My.SSS account by clicking “PRN – LOANS.”
- Payor Type – Choose “Individual.”
- Country – Select “Philippines” if you’re currently in the Philippines.
- Amount – Enter the exact amount to pay (including centavos). Keep in mind that consolidated loans must be paid in full in a single transaction. Partial payment will result in the cancellation of your application.
- Email Address – Enter your email to receive a confirmation and receipt.
- Press “NEXT” to proceed.
- Review your payment details, making sure that everything is correct. Press “CONFIRM” to submit your payment.
Read this article for the complete steps on how to pay your SSS loan using GCash.
How to Pay Your SSS Loan Using PayMaya
- Open the PayMaya app and login using your password.
- Tap “Pay Bills” on the home screen.
- Select “Government.”
- Select “SSS Loans – RTPL.”
- Enter the following payment details:
- Payment Reference No. – Enter your PRN which you can find in your My.SSS account or SSS mobile app.
- Amount – Enter the exact amount to pay (including centavos). Partial payments are not allowed.
- Payment Type – Choose “Individual.”
- Member/Employer Name – Enter your complete name.
- Press “Continue” to proceed.
- Review your payment details and press “Pay.”
How to Pay Your SSS Loan Using UnionBank Mobile App
- Open the UnionBank mobile app and login using your password and OTP.
- Tap “Pay Bills.”
- Tap “Select Biller.”
- Select “Biller List.”
- Choose “SOCIAL SECURITY SYSTEM (SSS).” You can search for “SSS” by tapping the magnifying lens icon on the upper-right corner.
- Enter your payment reference number or PRN. Press “NEXT.”
- The UnionBank app will automatically fill in your payment details including the amount. Review the information and then press the “PAY” button to complete the payment.
Frequently Asked Questions
How will I know if I’m eligible for loan condonation?
SSS member-borrowers with past due short-term loans that are delinquent for a period of six (6) months as of the start of the condonation period are eligible for loan condonation. To check if you’re eligible for the SSS loan condonation program, just login to your My.SSS account and click “E-SERVICES” and then “Apply for Loan Penalty Condonation (STMLPCP/PRRP5).”
Can I make a partial payment for my consolidated loan?
No. The consolidated loan, whether under the one-time payment or the 50% downpayment, must be fully paid in a single payment transaction.
What happens if I make a partial payment for my consolidated loan?
Any partial payment for the consolidated loan will result in the cancellation of your loan condonation application, and no penalty will be condoned. However, the partial payment for the consolidated loan will be considered as a regular payment and will be applied to your oldest outstanding short-term loan in this order of priority: penalty first, interest second, and principal last.
Can I reapply for SSS loan condonation even if my previous application was cancelled?
Yes. In case you were unable to pay the full amount of your consolidated loan or 50% downpayment (for installment term) and your application was cancelled, you can reapply for loan condonation, provided that it is made on or before the last day of the condonation period.
What happens if I wasn’t able to pay my consolidated loan before the due date?
If you were unable to pay the full amount of your consolidated loan before the due date, your loan condonation application will be cancelled. However, you can still reapply for loan condonation on or before the last day of the condonation period.
What happens if I wasn’t able to pay my monthly installment before its due date?
If you were unable to pay your restructured loan installment on or before the due date, you will be charged a 1% penalty per month within the 6 months payment term.
What happens if I wasn’t able to fully pay my restructured loan?
If you failed to pay the full amount of your restructured loan (50% installment) by the end of the payment term, the unpaid principal and the proportionate balance of condonable penalty will become part of the new principal under Restructured Loan 2 (RL2). The full amount of RL2 including accrued interests will be immediately due and demandable.
Where can I find my payment reference number or PRN?
Your payment reference number (PRN) can be accessed by logging in to your My.SSS account and clicking “PRN – LOANS” on the main menu bar. Use the PRN when paying your loan via accredited payment partners and online payment apps.
When will my payment be posted or credited to my account?
SSS loan payments are posted in real time through the Real-Time Processing of Loans (RTPL), so you should expect your payment to be credited to your account immediately. Any delays in posting are usually the responsibility of the payment partner and your inquiries should be directed to the payment partner in question.
I have fully paid my loan. When can I apply for a new loan?
You can avail of another SSS short-term member loan (e.g. salary loan) after a month from the date of full payment of your consolidated or restructured loan.
Final Thoughts
The SSS loan condonation program is a welcome development that gives each and every SSS member the opportunity to settle their outstanding loan obligations at favorable payment terms and without the burden of penalties. If you have an SSS loan that you have not paid for a long time and which has accumulated a hefty penalty, now is a great time to apply for loan condonation and avail of the chance to pay off your loan in easy and affordable monthly installments.
If you have any questions and concerns about the SSS loan penalty condonation program, you can call the SSS hotline number 1455 or email [email protected] or [email protected].
Thank you so much for the info. Very helpful. Good job!