MANILA, 18 July 2005 — Overseas Filipino Workers who have delinquent loans from the Social Security System (SSS) are being enjoined to settle these before the end of September to avail themselves of the agency’s offer to waive penalties.

SSS officials issued this reminder to members recently, saying that the circular condoning penalties on delinquent housing, salary, calamity, emergency, and educational loans would end on Sept. 30.

This covers all borrowers, whether in the Philippines or abroad, who are delinquent in the payment of their monthly amortizations since last year.

Circular No. 21-P signed last year by the SSS President and Chief Executive Officer Corazon dela Paz stipulates guidelines for the condonation of penalties on delinquent short-term loans.

It says that the availment period started last Oct. 1, 2004 and will end on Sept. 30, 2005. Payment of arrears that cover both the outstanding principal and interest may be in partial or in full during the availment period.

The amount of penalties to be condoned is proportionate to the amount of arrears paid. For example, if all arrears are paid, then all corresponding penalties are condoned. If only 50 percent of arrears are paid, then only 50 percent of penalties are condoned. The balance will continue to accumulate penalties.

However, if the remaining balance is subsequently paid during the availment period, the accumulated penalties are condoned. Borrowers will be allowed to apply for short-term loans only after two years from the date of the last payment made within the condonation period.

A borrower who pays at least 500 pesos will be eligible to participate in the Delinquency Assistance Program of SSS.

Four hundred delinquency assistances at P5,000 each will be raffled off to borrowers who avail of the program. The borrower is entitled to one computer-generated raffle entry for every P500 payment. Each borrower is entitled to only two winning entries. The prize shall be applied to the borrower’s loan balance, if any; the excess shall be paid to the borrower.

To avail of the condonation program, the borrower must accomplish an application for Penalty Condonation Form. A copy of this form may be downloaded at SSS website: sss.gov.ph.

For posting and payment, you may get in touch with your local SSS branch assigned in your work area.

The SSS program is meant not only to make life easier for its members but also to encourage them to pay their loans.