Guide on SSS Conso Loan Default Status Consequences for Members-Borrowers
SSS CONSO LOAN DEFAULT 2025 – Here’s what you should know in case your Conso Loan account under the Social Security System falls into a default status.
Whether you already have an existing conso loan or planning to avail the SSS Conso Loan Program of the social insurance giant, it is important to know the situations that could lead your account to be under a default mode.
No one surely wants any of his/her loan to be in default — this Conso Loan is already a huge opportunity to pay off your loans and get the penalties waived upon the full payment of the total short-term loans combined. However, truth be told that there might be instances that could make the Conso Loan repayment challenging.
When is an SSS Conso Loan considered in default status? Here are the situations that could lead your loan to be in a default status:
- if you fail to pay in full the agreed one-time payment or down payment within the approved period
- if you fail to pay their obligation equivalent to more than six (6) accumulated monthly amortizations
- if you fail to pay in full the installment plan within the approved term
- if you committed any fraudulent acts against SSS or violated any of its regulations and guidelines
What are consequences if your SSS Conso Loan will fall into a default status? According to the Social Security System, the member-borrower will be mandated to pay off the full amount of the SSS Conso Loan including the condoned portion of the penalties. It must be paid without a need for a demand or a notice from the social insurance giant.
Furthermore, the Conso Loan’s outstanding balance which is composed of the unpaid principal and interest will be deducted from any member that the member-borrower will avail. It will include the following benefit offers:
- SSS Sickness Benefit
- SSS Maternity Benefit
- SSS Disability Benefit
- SSS Retirement Benefit
- SSS Death Benefit
Meanwhile, a member-borrower with a SSS Conso Loan account in default status may still re-apply to the program after two (2) years from the date of full payment of the defaulted loan.
Aside from the loan offer and the aforementioned SSS benefits, the Social Security System also offers the SSS cash loan, the SSS Housing Loan, and the SSS Calamity Loan.