Finance Secretary and Social Security Commission (SSC) ex-officio Chair Ralph G. Recto has approved a lower interest rate and a drastically faster activation process for the Social Security System’s (SSS) Calamity Loan Program to deliver swift financial relief to Filipinos in areas declared under a State of Calamity.

“Napakabuting balita nito para sa ating mga kababayang nangangailangan ng maagap na tulong pinansyal. Kung dati isang buwan bago mo makuha ang loan, ngayon pitong araw na lang. Bukod pa dito, mas pinababa pa natin ang interest para hindi mabigat sa bulsa,” he said.

The move follows President Ferdinand R. Marcos, Jr.’s directive last May to reduce interest rates and expedite the delivery of government financial services to disaster-stricken Filipinos.

The interest rates for calamity loans were reduced to 7% per year from the current rate of 10%. Last month, the SSS already reduced the interest rate for salary loans to 8% per year from 10%.

To complement this, the SSS streamlined the activation process for its calamity loans to just 7 days, a significant improvement from the previous activation period of one month.

In addition, members can renew their calamity loans after six months as long as they pay their dues on time for their existing Calamity Loan Program (CLP).

The calamity loan is payable within two years, spread across 24 equal monthly installments, and shall begin on the succeeding month following the month the loan was approved.

A service fee of 1% of loanable amount will be charged from the proceeds of the loan.

To ensure transparency and efficiency in the process, the loan proceeds will be released through members’ active Unified Multi-Purpose ID (UMID) ATM cards or active single account in any PESONet participating bank.

The reduced interest rates may be availed by SSS members with good credit records.

Interested applicants have 30 days to avail of the program from the date of its announcement in a newspaper of general circulation.