Guide on SSS Housing Loan Offer Features & Application
SSS HOUSING LOAN – Here is a guide on the important details about this excellent loan offer of the Social Security System.
One of the social insurance giants in the Philippines is the Social Security System or more popularly called SSS. Millions of Filipinos are members of the SSS and there are also Pinoys who are working abroad while maintaining an active membership to the state entity.
The SSS is in the service of the Filipino people for decades already. It provides several kinds of benefits that are ready to financially assist the members in times of sickness, unemployment, maternity, disability, retirement, and death.
Aside from the benefit offers, the Social Security System also got loan offers — the Salary Loan, the Housing Loan, and the Calamity Loan. Each has their own set of features.
With regards to the SSS Housing Loan offer, it is open to finance minor and major house repair and/or improvements. These purposes may include the following:
- the repair of dilapidated and structurally unsafe housing units
- extension or expansion and enhancement of economic and aesthetic value of an existing housing unit
- installation of deep well and motor pump
- completion of an occupied bare house
- construction of concrete fence and steel gate
Under the SSS Housing Loan, the maximum loanable amount is Php 1 million. The social insurance giant may finance at least 70% of the appraised value of the collateral but not more than 90% of the appraised value. The state entity considers the borrower’s capacity to pay and the actual need for the project.
With regards to the interest rate under the Housing Loan offer, it is set at 9% per annum. The loan is payable in multiples of five (5) from five years up to 20 years except in the case of overseas Filipino workers. OFW borrowers are allowed a maximum loan term of 15 years.
The Social Security System charges a processing fee “of 1/2″equivalent to ½ of 1% of loan amount or P500.00 whichever is higher but not to exceed P3,000.00 to be deducted from the first loan release”. The inspection fee is set at Php 500.
