Guide on SSS Housing Loan Features & Application
SSS HOUSING LOAN – The Social Security System is ready to help finance your house repair or home improvement projects.
Although it is not as popular as the Housing Loan offer of the Pag-IBIG Fund, another Housing Loan offer that countless individuals may avail is the Housing Loan offer of the Social Security System.
Millions of Filipinos are members of the SSS thus a lot of people really have an access to the loans provided by the state-run social insurance institution. These are aside from the benefit offers of the state-run social insurance entity that attend to different needs.
One of the loans provided by the Social Security System is the SSS Housing Loan. It was designed to finance house repair and home improvement projects — both major and minor projects.
It is a loan offer that you can turn to for the financing of the completion of an occupied bare house, an extension or expansion and enhancement of economic and aesthetic value of an existing housing unit, the installation of deep well and motor pump, etc.
Who are qualified to apply for the Housing Loan offer of the Social Security System? Here are the qualifications set by the state-run social insurance entity under the loan offer:
- has posted at least 36 months contributions and 24 continuous contributions in the period prior to application
- not more than 60 years old at the time of the filing of the loan application
- was not previously granted a repair and/or improvement loan by the SSS or NHMFC
- not a recipient of any final benefit of the Social Security System
- update with the payment if there is an existing loan account
How much is loanable under the SSS Housing Loan offer? The amount allowed by the state-run social insurance agency actually varies. Here are the factors considered by the state-entity:
- appraised value of collateral of at least 70% but not to exceed 90%
- actual need of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS
- borrower’s capacity to pay
The Social Security System allows the repayment of the loan in multiples of five (5) years up to 20 years except in the case of OFWs. Filipino members of the SSS who are working abroad are allowed a maximum loan term of 15 years.
The SSS Housing Loan offer may be availed directly at a branch of the Social Security System or thru any of the state entity’s accredited participating financial institutions (PFIs) which are as follows:
- Philippine Veterans Bank
- Land Bank of the Philippines
- Planters Development Bank
- Valiant Rural Bank — Iloilo
In applying for the loan offer, it is important to know that the Social Security System charges a processing fee equivalent to ½ of 1% of loan amount or P500.00, whichever is higher. There is also an inspection fee of Php 500.00 as well as requirements to prepare.
