By Alec Go
The Social Security System (SSS) said pension loan releases hit a record-high of P5.95 billion in 2022, nearly double the P3.08 billion released in 2021.
This is its highest yearly disbursement since the Pension Loan Program (PNP) began in 2018.
“From January to December 2022, the SSS has disbursed a monthly average of P495.77 million pension loans benefitting 10,660 retiree-pensioners, which is 93% higher than its corresponding monthly average in 2021 of P257.01 million to 5,753 retiree-pensioners,” SSS President and Chief Executive Officer Rolando Macasaet said.
For the same year, there were 27,920 retiree-pensioners who availed from the PLP, 85% up from the 69,036 in 2021.
In Luzon, 30,158 retiree-pensioners applied for the program with nearly P1.39 billion in pension loans. This was followed by Metro Manila with 28,239 pensioners or an equivalent of P1.43 billion disbursed loans.
Visayas had 17,038 loan applicants with P740 million and Mindanao had 12,917 borrowers amounting to P590 million.
There were 39,568 loan applicants online with a loan amount of P1.80 billion.
“Starting May 2022, SSS enhanced PLP by allowing first-time applicants to file their loan applications using their My.SSS account, resulting in 39,568 approved pension loan applications in 2022, a 963% increase from only 3,721 in 2021,” Macasaet said.
He added the program helps prevent retiree-pensioners “from becoming victims of private lending institutions that charge high interest rates and require them to surrender their ATM cards as collateral.”
The PLP program has a 10% per annum interest rate for borrowers within a payment period of six to 24 months.
Qualified pensioners can borrow up to P200,000 or three, six, nine, or 12 times their monthly pension with the added P1,000 benefit granted in 2017. – gb
