The Social Security System (SSS) announced today that it will be issuing the revised Calamity Loan Program (CLP) guidelines aimed at helping members in areas declared under State of Calamity (SOC) due to various natural disasters, including Tropical Storm Crising which struck various parts of the Philippines with strong winds and rain showers.
Enhanced financial assistance – lower interest rate and renewal allowed after 6 months
“Following through on the announcement of His Excellency President Ferdinand R. Marcos, Jr. last 1 May 2025 on the reduction of interest rates for salary and calamity loans, we proposed and obtained approval of the Social Security Commission, headed by our Chairperson Finance Secretary Ralph G. Recto, to reduce interest rates for calamity loans to 7% per annum from the current rate of 10%. This follows the reduction of interest rate for salary loans to 8% per annum from the previous 10% which was implemented last month,” SSS President and Chief Executive Officer Robert Joseph M. De Claro said.
Such a reduced interest rate is for members with good credit records (i.e., for applicants without availment of penalty condonation for the past 5 years).
To further enhance financial assistance to members, the revised guidelines have been liberalized to allow calamity loan renewal after six (6) months provided that the existing CLP is not past due.
Streamlined activation process for immediate financial assistance / relief
“An important improvement in the revised guidelines is the streamlining of the activation process of the Calamity Loan Program (CLP) which will allow activation of the program within seven (7) working days from the calamity event date. Previously, activation of the calamity loan program takes about one month,” De Claro said.
“SSS Branch Operations Sector and International Operations Group units will have a more active role in the activation process when they endorse State of Calamity declarations to the SSS Member Loans Department within two (2) calendar days from date of issuance,” De Claro added.
Features of the revised Calamity Loan Program (CLP) guidelines
Loanable amount
Equivalent to one (1) Monthly Salary Credit (MSC) computed based on the average of the last 12 MSCs rounded up to the nearest thousand or the amount applied for, whichever is lower and capped at P20,000.
Availment period
Up to 30 calendar days to commence on the date of announcement of the availability of the CLP in a newspaper of wide circulation.
Eligibility requirements
Members must have at least 36 monthly contributions – 6 of which must be posted within the last 12 months prior to the month of filing. For individually paying members, they must also have at least 6 posted contributions under their current membership type (self-employed, voluntary, or land-based OFW).
Member must be registered in the SSS website (My.SSS facility) for filing of online application.
Member must have no past due loan accounts and no outstanding restructured loan.
Member must have not been granted any final benefit.
Member must be of legal age and under 65 years of age at the time of application for loan.
Member must have not been disqualified due to fraud committed against the SSS.
Employer of employed member must be updated in payment of contributions & loan remittances.
Filing of loan application
A member may file / submit the calamity loan application online through the SSS website by accessing his / her My.SSS account or through the SSS Mobile App.
Release of loan proceeds
Loan proceeds shall be released through active UMID ATM card or active single account in any PESONet participating bank in the name of the member which must be enrolled in the Disbursement Account Enrollment Module (DAEM) of the member-borrower’s My.SSS account.
Repayment term and schedule of payment
The loan shall be payable within two (2) years in 24 equal monthly amortizations. The loan amortization shall start on second month following the month of approval of the loan.
Service fee
Service fee of 1% of loanable amount shall be charged and deducted from proceeds of the loan.
Penalty
Loan amortization not remitted on due date shall bear a penalty of 1% per month computed and charged for every day of delay. If the loan remains unpaid after 24 months, 10% annual interest and 1% monthly penalty will apply until fully paid.
“With the issuance of the revised CLP guidelines, SSS will provide emergency financial relief to mitigate impact of natural disasters to members and help get them toward the path of recovery under liberalized terms and conditions,” De Claro said.
In 2024, the SSS disbursed nearly P10 billion in calamity loans to over 560,000 affected members. To further strengthen the CLP this year, the SSS is earmarking approximately P20 billion, underscoring its commitment to helping members recover financially from natural disasters. #
