Home GUIDE: SSS Calamity Loan

GUIDE: SSS Calamity Loan


The SSS Calamity Loan is a literal lifesaver for a country like the Philippines, which is frequently besieged by natural disasters. Tropical cyclones, earthquakes, volcanic eruptions, and the like—you name it! These natural calamities wreak havoc on landscapes and lives and can take a toll not only on our emotional health but also on our financial well-being.

Fortunately, as mentioned above, the Social Security System in the Philippines offers a lifeline in the form of the Calamity Loan. With that said, here are the things you need to know about this aid. (Not to wish ill, but of course, it’s better to be safe than sorry!)

Table of Contents

About the SSS Calamity Loan

The SSS Calamity Loan Assistance Program (CLAP) serves as a lending initiative exclusively available to SSS members residing in areas affected by calamities. This program forms a part of the broader SSS Calamity Assistance Program (CAP), with the Three-Month Advance Pension being its counterpart.

Loan Amount Available

The loan amount is determined by one’s monthly salary credit (MSC), which is calculated based on the average of the last 12 MSCs, rounded up to the nearest thousand, or the applied amount, whichever is lower. This sum can be repaid over two years in 24 equal monthly installments, with the amortization commencing in the second month after the loan approval.

Interest Rates and Related Fees

The said loan comes with specific fees:

  • Interest: 10% annually until fully repaid.
  • Pro-rated interest: Covers the period from the loan approval date to the end of the month preceding the initial amortization month; this amount is deducted in advance from the loan proceeds.
  • Penalty: 1% per month, applicable for any payment delays within a month, resulting in a full month’s penalty charge.
  • Service fee: 1%

Eligibility Requirements

To qualify for application, you need to meet specific criteria:

  • Be registered on the My.SSS portal.
  • Reside in an officially declared calamity area.
  • Possess at least 36 monthly contributions, including six posted within the last 12 months before the application for the calamity loan.
  • Self-employed, voluntary, and land-based Overseas Filipino Workers (OFWs) must have six monthly contributions under the current coverage or membership type before applying.
  • Have not availed of final benefits like retirement or permanent total disability benefits.
  • Maintain no outstanding balance in the SSS Loan Restructuring Program (LRP) or CLAP.
  • For employed applicants, employers should certify their online CLAP application via the My.SSS facility.

Offline Application

For those who prefer the traditional application method, you can visit any Branch Office to submit the necessary requirements. If you’re applying on behalf of a member, ensure you have an authorization letter.

Receiving the Proceeds

There are three convenient channels for receiving the loan proceeds:

  • Active UMID-ATM: If you possess an activated UMID-ATM, the loan amount is automatically credited to it.
  • PESONET-accredited banks: The funds are deposited into the bank account you registered in the Disbursement Account Enrollment Module on My.SSS.
  • UnionBank Quick cards: You can obtain this card at select SSS Branches with a UnionBank of the Philippines (UPB) kiosk.

How Many Days SSS Calamity Loan Releases

When facing the aftermath of a natural disaster, time is of the essence. The agency strives to provide swift assistance to its members. Typically, it takes the SSS three to five working days to process a loan application. However, during peak periods or unusually high application volumes, the SSS Calamity Loan release of funds may take a bit longer. It’s essential for applicants to keep their lines of communication open to receive prompt updates.

How Can I Check My SSS Calamity Loan Status

If you have an ongoing calamity loan, you might ask, “How Can I Check My SSS Calamity Loan Status?” To ensure transparency and convenience for its members, the agency utilizes the aforementioned online platform called My.SSS, where individuals can easily monitor the status of their loan application. The process involves:

  • Visiting the official SSS website and logging into the My.SSS account.
  • Navigating to the section that provides information about loans or loan applications.
  • Locating the status of the calamity loan application, which may be displayed as “Processing,” “Approved,” or “Disapproved.”
  • Taking note of any additional instructions or requirements if the loan has been approved.

In case of difficulties or specific inquiries, members can contact the SSS customer service hotline or visit an SSS branch for further assistance.

Until When is the SSS Calamity Loan Available?

The availability of the SSS calamity loan varies based on the specific disaster or calamity. The loan is typically offered to members living in areas declared as calamity-stricken by the National Disaster Risk Reduction and Management Council (NDRRMC). Therefore, the loan application period is contingent upon the declaration of a calamity in a particular area. It’s essential for members to stay updated on the latest announcements from SSS regarding the availability and deadlines of calamity loans.

SSS Calamity Loan 2023

The SSS Calamity Loan Assistance Program (CLAP) is a vital resource for members residing in calamity-affected regions. This program is part of the SSS’s broader Calamity Assistance Program (CAP), which also includes the Three-Month Advance Pension. Moreover, the SSS calamity loan for 2023 is currently available, with specific loans designated for areas affected by disasters like the Mayon Volcano’s unrest and Typhoon Egay.

SSS Calamity Loan Form

Should you find yourself in need of applying for the calamity loan, you may access the loan form here

Repaying the SSS Calamity Loan for 2023

For employed members, loan repayment occurs through salary deduction. Self-employed or voluntary members can make payments at any SSS Branch Office with a tellering facility, SSS-accredited bank, or SSS-authorized payment center. It’s crucial to note:

  • You must complete the payment of your current calamity loan before applying for another in the future.
  • Overpayment on a prior loan will be validated by the SSS and applied to the active loan or refunded upon request.
  • Cumulative unpaid obligations exceeding six months will lead to loan default, incurring a 10% annual interest on the outstanding principal balance, along with an additional 1% monthly penalty on unpaid principal and interest until fully repaid.

In conclusion, the SSS Calamity Loan is a vital lifeline for members navigating the aftermath of disasters, providing essential financial assistance during these trying times. Recovering from such crises involves addressing various challenges, spanning physical, emotional, and financial well-being for both yourself and your family. In the year 2023 and beyond, the SSS calamity loan stands as a reliable support option. 

For the most up-to-date information and guidance, you may refer to official SSS channels and resources.

Sources: (1), (2), (3)

Also Read: GUIDE: How to Apply SSS Calamity Loan Online 2023

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