How To Avail Of The SSS Short-term Loan Restructuring And Penalty Condonation Program

Do you have an outstanding short-term loan with the SSS that has remained unpaid for quite some time now? Are you afraid to inquire about it because you are sure that the penalties and interest charges may have already overtaken the principal amount?

The SSS has some good news!

Beginning November 15 up to February 14, 2022, the SSS will accept applications for Short-term loan restructuring and penalty condonation under the Pandemic Relief and Restructuring Program 5 (PRRP 5).

Who are eligible to take advantage of the loan restructuring program?

  • All member borrowers that have not made payments for their short-term loan for at least six months from the start date of the restructuring program (November 15, 2021). Short-term loans include:
    • Salary Loan
    • Calamity Loan
    • Salary Loan Early Renewal Program
    • Emergency Loan
    • Restructured Loans Under the Loan Restructuring Program implemented in 2016 to 2019.
  • Member-borrowers must meet the following criteria:
    • Must not be over 65 years old by the time the installment term lapses (if paying through installment basis).
    • Must have not received his or her final benefit from the SSS such as Permanent Total Disability or Retirement.
    • Must not have a history of disqualification due to fraud against SSS.
  • The SSS will also accommodate applications from member-borrowers who wish to file for permanent total disability or retirement benefits as well as from beneficiaries of deceased member-borrowers under special conditions. You may read the fine print at the SSS website or on the SSS Facebook page.

What are the payment terms?

The SSS shall consolidate the outstanding principal and interest of all the member-borrower’s loans. The total amount may be paid through:

  1. One-time Payment
    • The consolidated amount shall be paid in full within 30 days from the date of receipt of the Notice of Approval of the Penalty Condonation Application.
    • No partial payments allowed if you chose one-time payment mode.
    • The one-time payment scheme is allowed for member-borrowers who are 65 years old and above and have not yet filed for final benefit claims.
  2. Installment Payment
    • 50% down payment – the first 50% of the consolidated loan amount must be paid in full in one payment transaction within 30 days from the date of receipt of the Notice of Approval of the Penalty Condonation Application.
    • No partial payments allowed.
    • The remaining 50% shall be paid in 6 equal monthly installments. The payments shall start on the month following the end of the 30-day period after receipt of the Notice of Approval of the Penalty Condonation Application.

How does the Penalty Condonation work?

  • Unpaid penalties will be waived:
    • Under the one-time payment term — 100% of the Consolidated Penalty will be waived as long as the Consolidated Loan amount is fully paid within the approved payment period (30 days after receipt of approval).
    • Under the installment program — 50% of the Consolidated Penalty shall be waived if the 50% down payment for the consolidated loan amount is paid within the prescribed period (30 days after receipt of approval).
    • The remaining 50% penalty shall also be waived if the member-borrower pays the remaining loan amount faithfully based on the agreed timeline.

How to apply and other conditions:

  1. Submit application through your My.SSS account on the SSS website. Online applications only except for the following:
    • Permanent Total Disability
    • Death and Retirement Benefits applicants
  2. Automatic qualification to the penalty condonation program will be granted to the member-borrower with Permanent Total Disability and Retirement Claim Application if:
    • Their DDR benefit claim application was submitted online or over-the-counter within the prescribed period for the Condonation Program.
  3. Get a Payment Reference Number (PRN) under the Real-time Processing of Loan. Use this when paying the restructured loan.
  4. In case you fail to pay the one-time payment or the 50% down payment of the Consolidated Loan amount, you may submit another application provided this is done on or before the last day of the condonation program (Feb 14, 2022).
  5. You must have paid the full amount indicated on the RL1 or RL2 before you are allowed to apply for a new loan at the SSS.

My parents told me to always make sure that my SSS contributions are updated and that all my loans are paid on time. Claiming my benefits and pension later on will be much easier if my records are updated. So, I will strongly suggest that you take advantage of this program to update your loan payments and clear your records with the SSS.

For more information on the loan condonation program of the SSS, please visit their Facebook page at


Published by MasterCitizen

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