As the country continues to face the repercussions caused by the coronavirus disease pandemic, the Social Security System (SSS) released its guidelines on the Calamity Loan Assistance Program (CLAP) for SSS members.
CLAP aims to aid affected active members in “pursuant to the Social Security Commission (SSC) Resolution No. 205-s.2020 dated March 25, 2020, as amended by SSC Resolution Nos. 235-s.2020, 236-s.2020, and 237-s.2020 dated May 29, 2020.
SSS President and CEO Aurora Ignacio signed Circular No. 2020-013 on Saturday, June 13.
Continue reading below for the coverage, availment period, eligibility, and more.
A. Coverage of the program
The coverage of the program is for active members who are residents of the entire Philippines affected by the strict community quarantine to manage the coronavirus disease 2019 pandemic.
B. Availment Period
The availment period for CLAP shall start on June 15, 2020, until September 14, 2020.
C. Eligibility – Who can avail?
To avail CLAP, the members:
- Must be registered in the SSS website to facilitate the filing of the online application;
- Must have at least thirty-six (36) monthly contributions, six (6) of which should be posted within the last twelve (12) months prior to the month of filing of application;
- Must be residents of the Philippines. A resident, for the purpose of CLAP, is one who has a home or work address within the Philippines;
- Have not been granted any final benefit, i.e. permanent total disability or retirement;
- Must not have an outstanding Loan Restructuring Program (LRP) or Calamity Loan Assistance Program (CLAP).
Note: Members’ home or work address as reflected in the SSS database must be within the Philippines.
D. Loan Amount
The loan amount shall be equivalent to one (1) monthly salary credit (MSC) computed based on the average of the last twelve (12) MSC (rounded up to the nearest thousand) or the amount applied for, whichever is lower.
E. Payment term and deadline
- The loan shall be payable in twenty-seven (27) months inclusive of three (3) months moratorium period;
- Loan amortization shall start on the fourth (4th) month following the date of the approval of the loan;
- Payment deadline shall be on or before the last day of the month following the application month;
- In case the payment deadline falls on a weekend or holiday, payment may be made on the next working day.
F. Service fee, interest rate, and penalty
- Service fee – 1% of the loan amount shall be charged and deducted from the proceeds of the loan;
- Interest rate – 6% per annum starting on the 4th month, computed on a diminishing principal balance and shall be amortized over the remaining twenty-four (24) months;
- NO advance interest shall be charged for this loan;
- Any excess in the amortization payment shall be applied to the outstanding principal balance;
- Loan amortization no remitted on the due date shall bear a penalty of 1% per month. A delay of a fraction of a month shall be charged a full month penalty.
- This calamity loan must be fully paid before the member can avail of another SSS calamity loan.
- Any overpayment on a previous loan shall be subject to validation of SSS, and if valid, shall be applied to the active loan, if any. If there is no active loan, it shall be refunded to the member-borrower upon his/her request.
- Aggregate unpaid obligation equivalent to more than six (6) monthly amortization shall result in loan default. The full balance of a defaulted loan shall become due and dependable. A defaulted account is subject to 10% interest per annum charged on the outstanding principal balance and 1% penalty per month on unpaid and interest in this program.
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G. Filing of application
Eligible members must apply for CLAP via the SSS website by accessing their My.SSS account.
H. Release of Loan Payment
- Check – sent via mailing address;
- Unified Multi-purpose Identification (UMID) – Automated Teller Machine (ATM) Card;
- Union Bank of the Philippines (UBP) Quick Card;
- Development Bank of the Philippines (DBP) Philippine Electronic Fund Transferred System and Operations Network (PESONet) accredited/participating banks.
For more CLAP inquiries, members are advised to log on to www.sss.gov.ph or call at 8920 6446 to 55 for assistance.
—(Source: Social Security System)