How to avail SSS Loan Condonation or Restructuring Program for 2018


This is a good news for those who have an existing loan at the Social Security System (SSS) who are not able to pay their loans for quite a long time. Admit it or not, there are some who took a loan and did not pay even a single dime because they do not have the means or because they simply do not want to do so. Maybe, the mentality behind that is that they believe that the SSS will not run after them and chase their debt.

These people are now given a chance to pay it under the newly released program called as Loan Reconstructing Program (LRP) with penalty condonation. All those with existing and unpaid short-term loans such as calamity, emergency, salary, and old educational loans are now allowed to apply. In this case, the incurred penalties from the unpaid loan will be removed and what these people have to pay is the annual interest only. If it so happens that the person has multiple loans, the SSS can also consolidate all those loans so that it will only be declared as one existing loan. After paying the no penalty debt, they will right away be given a chance to take another loan after six months. This program will take effect starting on April 2, 2018, up to October 1, 2018.

For those who are interested to grab this opportunity of paying a loan without the incurred penalty, you may go to the nearest SSS branch. Ask for a copy of the LRP form and fill in the necessary details. There is also a need for you to bring two valid government IDs. For those who are availing for calamity loan, you may also need to ask for an affidavit of residency to prove that you are really from a place stated as under calamity status. While for the Overseas Filipino Worker, you will need an authorization letter for your representative who will work on your LRP application. The consequence here is that if you happen to fail to comply with the payment required under the LRP, there is a corresponding given interest. This may answer all the worries and fears of those with unpaid loans. Of course, we should also remember that we have to be responsible enough to pay whatever loan we borrowed from the government.


  1. Secure updated Statement of Loan Balances for Loan Restructuring Program (2 copies) from the nearest SSS branch or foreign office prior to submission of this form.
  2. Fill ou the Loan Restructuring Application Form (MEL-01368 (03-2018)) in one copy.
  3. Fill out and check the applicable items of Part I.C. Certification and Undertaking. Items 1 and 2 are not applicable to filers with death benefit claim.
  4. Always indicate “NA” or “Not Applicable”, if the required data is not applicable.
  5. Always affix initials on all erasures/alterations on this form.
  6. Secure copy of Notice of Approval of the Loan Restructuring Application prior to payment.
  7. Submit this form to the nearest SSS branch or foreign office with the following required documents (use the table Documentary Requirements Guide).

Documentary Requirements Guide

(SSS Receiving Officer to check the appropriate box of each ID card/document submitted/presented and write any remarks as necessary).

A. Primary ID Cards/Documents

  1. Social Security (SS) Card
  2. Unified Mum-Purpose ID (UMID) Card
  3. Driver’s License
  4. Passport
  5. Professional Regulation Commission (PRC) card
  6. Seaman’s Book (Seafarers Identification & Record Book)

B. Secondary ID Cards/Documents

  1. Alien Certificate of Registration
  2. Certificate of Licensure/Qualification Documents from Maritime Industry Authority
  3. Certificate of Muslim Filipino Tribal Affiliation Issued by National Commission on Muslim Filipinos
  4. Company ID Card
  5. Firearm License card Issued by Philippine National Police (PNP)
  6. Fishworker’s License Issued by Bureau of Fisheries and Aquatic Resources (BFAR)
  7. Government Service Insurance System (GSIS) card/Member’s Record/Certificate or Membership
  8. Health or Medical card
  9. Home Development Mutual Fund (Pag-lBlG) Member’s Data Form
  10. ID card issued by Local Government Units (LGUs) (e.g., Barangay/Municipality/City)
  11. ID card issued by professional association recognized by PRC
  12. Marriage Contract/Marriage Certificate
  13. Overseas Worker Welfare Administration (OWWA) card
  14. Philippine Health Insurance Corporation (PHIC) ID card
  15. Police Clearance or NBI Clearance
  16. Postal ID card
  17. School ID card
  18. Seafarers Registration Certificate issued by Philippine Overseas Employment Administration
  19. Senior Citizen card
  20. Taxpayers Identification Number (TIN) card
  21. Voter’s Identification card or Voter’s Affidavit/Certificate of Registration

C. Statement of Loan Balances for Loan Restructuring Program

D. Letter of Authority

E. DDR Claim Application Acknowledgement Letter



        1. All member-borrowers with any of the following past due short-term loans are eligible for the program.
          • Calamity Loan
          • Emergency Loan
          • Vocational/Technical Course Loans
          • Salary Loan Early Renewal Program (SLERP)
          • Educationa Loan (old)
          • Y2K Loans
          • Salary Loan
          • Study Now Pay Later Plan
          • Investments Incentive Loan
        2. For past due short-term loans except Calamity Loan and SLERP, member borrower must have previously lived/worked in a calamity/disaster stricken area as declared by the National Disaster Risk Reduction and Management Council (NDRRMC) or the National Government
        3. The outstanding short-term loan/s must be past due for a period of at least six (6) months as of the first day of availment period
        4. The member-borrower:
          • 4.1 Must be living or working in calamity/disaster declared area as of disaster date. “Living shall refer to the home address of the member-borrower.
          • 4.2 Must be under 65 years old at the end of the Installment term.
          • 4.3 Has not been granted any final benefit i.e. permanent total disability or retirement.
          • 4.4 Has not been disqualified due to fraud committed against the SSS.
        5. Member-borrowers wrth fina benefit claim app icaton (Death Permanent Total D sabi ity Retirement) whose cont ngency date is on or before the last day of the eve lment period of the Loan Restructuring Program Said final benefit caim must be t” ed within the ava lment period of the Loan Restructur rig Program


Covered areas are those declared by NDRRMC or the National Government as under the state of calamity due to the following calamities/disasters:

  1. Ondoy (2009)
  2. Sendong (2011)
  3. Pedring and Quiel (2012)
  4. Pablo (2012)
  5. Labuyo (2012)
  6. Maring (2013)
  7. Santi (2013)
  8. Armed Conflict in Zamboanga City (2013)
  9. Earthquake in Bohol and Cebu (2013)
  10. Yolanda (2013)
  11. Agaton (2013)
  12. Glenda (2014)
  13. Mario (2014)
  14. Ruby (2014)
  15. Seniang (2015)
  16. Lando (2015)
  17. Nona (2015)
  18. Lawin (2016)
  19. Nina (2016)
  20. Earthquake in Surigao del Norte (2017)
  21. Earthquake in Leyte (2017)
  22. Armed Conflict in Marawi City (2017)
  23. Urduja/Vinta (2017)
  24. Mayon Volcano Phreatic Eruption (2018)


Loan Restructuring Program may be availed for SIX (6) months from April 2, 2018 to October 1, 2018.


The principal and interests of all past due short-term loans of the member-borrower shall be consolidated into one Restructured Loan (RL1) payable in full or installment payment.

  1. Full payment – payable within 30 days from the approval date of restructuring application
  2. Installment payment – payable in equal monthly amortization based on payment range as follows:
    RL1 RANGE (Sum of Principal & Interest)NUMBER OF MONTHS TO PAY
    P2,000.00 to P18,000.0012 months
    P18,001.00 to P36,000.0024 months
    P36,001.00 to P54,000.0036 months
    P54,001.00 to P72,000.0048 months
    More than P72,000.0060 months


  1. For installment term, RL1 shall be subject to interest rate of 3% per annum computed on a diminishing principal balance over the applicable payment term.
  2. A penalty of 0.5% shall be charged against the amortization due for every month unpaid during RL1 term.


Penalties shall be condoned after full payment of outstanding principal and interest of RL1 within the approved term. The balance of RL1 should be zero at the end of the term. Otherwise, the unpaid principal of RL1 and the proportionate balance of condonable penalty shall become part of a new principal under Restructured Loan 2 (RL2).


  1. Monthly installment shall be due for payment every 10th day of the month following the amortization month. Amortization shall start on the month immediately following the approval date of the Restructured Loan.


  • Restructured Loan Approval Month: APRIL
  • 1st amortization month: MAY
  • 1st installment amortization is due on JUNE 10
  1. Payment shall be made through any SSS branch with tellering facilities or authorized collection agents of the SSS.


  1. While the Restructured Loan is existing or outstanding, the member-borrower cannot avail other SSS short-term loan programs including Educational Assistance Loan Program.
  2. The member-borrower may avail of SSS short-term loan program after six (6) months from the date of full payment of the Restructured Loan.
  3. Once the member-borrower availed of this loan restructuring program, he/ she is disqualified from availing of any future loan condonation/ restructuring programs of SSS.
  4. In case of member-borrower’s death, total disability, or retirement, the total loan obligation or any unpaid amount of the loan as well as the interest and penalty shall be deducted from the final benefits.