SSS opens COVID-19 Calamity Loan Assistance Program

Philippine Social Security System (SSS)

The Social Security System (SSS) on Monday opened its Calamity Loan Assistance Program (CLAP) for members who are affected by the coronavirus disease 2019 (COVID-19) pandemic.

SSS President and CEO Aurora C. Ignacio said the SSS estimates around 1.74 million potential member-borrowers for the program.

Depending on the average of their monthly salary credit in the last 12 months, members may apply for a loan of up to P20,000.

“We recognize that the impact of COVID-19 is greater than other calamities we have faced in the past. With that in mind, we have extended the payment term of this particular CLAP to 27 months, inclusive of a three-month moratorium period, and have lessened the interest rate to six percent per annum,” Ignacio said.

Normally, CLAPs have a payment term of 24 months and an interest rate of 10 percent per annum.

Loan amortizations for COVID-19 calamity loans will begin in the fourth month from their respective approval dates. No advance interest will be charged for the said loan. A service fee of one percent of the loan amount will be charged and deducted from the loan proceeds.

Loan payments not remitted on its due date will bear a one percent penalty per month.

To qualify for the loan, a member must: have at least 36 monthly contributions, six of which should be posted within the last 12 months before the application; have a work or home address within the Philippines as reflected in the SSS database; have not been granted any final benefit such as total permanent disability or retirement; and have no outstanding loans under the Loan Restructuring Program or previous CLAPs.

Members must also be registered at the My.SSS web portal on the SSS website at to apply for the loan.

“The threat of COVID-19 will likely remain in the coming months. To this end, we have developed an online facility in the My.SSS web portal in which we will receive all calamity loan applications to reduce face-to-face transactions in our branches,” Ignacio explained.

Documents proving that a member is a resident of a declared calamity area, which is a usual requirement for the CLAP, will no longer be required for COVID-19 calamity loans since the entire country is placed under the state of calamity.

Member-borrowers may choose to receive their loan proceeds via their respective Unified Multi-Purpose Identification cards enrolled as an ATM, Union Bank of the Philippines Quick Card, or through checks sent to their preferred mailing address.

“Through the CLAP, we are hoping to help with the financial needs of our members who may have lost their sources of income or suffered financial burden due to the COVID-19 situation,” Ignacio said.

Qualified members may apply for the said CLAP until September 14, 2020.

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