The SSS-GSIS Pensyonado (SGP) Partylist on Thursday (July 18) lauded the Social Security System (SSS) for encouraging its member-borrowers who have failed to pay their loans to settle their delinquent dues through the Consolidated Loan With Penalty Condonation Program or CONSO LOAN.
“We applaud the CONSO LOAN program of the SSS. By condoning or waiving all penalties incurred due to delinquent loans and by providing an extended repayment terms to our members, we encourage them to continue paying their contributions which would provide better coverage for our future pensioners. There’s no service fee, applying is a breeze, and you can get back into the good graces of SSS.” SSS-GSIS Pensyonado Partylist spokesperson Fercival Yutan said.
The SSS-GSIS Partylist spokesperson said SSS members-borrowers can apply for a CONSO LOAN with a due Short-Term Member Loan (STML) account previously.
According to the SSS, salary loans, calamity loans, emergency loans, and restructured loans qualify for the CONSO LOAN. The SSS will determine if other STMLs are eligible for consolidation.
Other applicants who can get a CONSO LOAN include member-borrowers with active My.SSS accounts, those who have not received any final benefit, and those who didn’t commit fraud.
The SSS CONSO LOAN combines all outstanding principal and interest of the member-borrower’s past due loans into a Consolidated Loan. It also consolidates the unpaid penalties for conditional condoning.
All SSS members-borrowers can pay the consolidated penalty through a one-time payment term or an installment plan.
“The SSS condones 100% of the penalty if you make the full payment on time. If you pay through installments, the SSS condones a percentage of the penalty that’s proportional to the down payment. The CONSO LOAN condones the rest of the penalty after you finish paying the loan,” the SSS-GSIS Partylist spokesperson said.
Failure to fully pay the SSS CONSO LOAN at the term’s end, however, will cause the account to default.
The SSS will reimpose the remaining penalty that hasn’t been condoned. Furthermore, the outstanding balance will be deducted from the expected benefits of the member-borrower or their beneficiaries. The unpaid balance will keep accruing interests and penalties until it’s settled.
The SSS charges an amortized interest rate of 10% per annum on the diminishing principal balance. If your payment arrives late, the CONSO LOAN adds a monthly charge of 1% until you fully pay the penalty.
Even if you’re forced to default on the SSS CONSO LOAN, you can still reapply for a new account. Unless the SSS sanctions your loan renewal, you can waive the penalty to make paying your dues easier.
Members-Borrowers can apply for a new SSS loan three (3) months after fully paying the CONSO LOAN. However, if you defaulted on your CONSO LOAN, you can only avail of a new loan after two (2) years.
