Guide on What You Need To Know about SSS Conso Loan Default Status & the Possible Penalties
SSS CONSO LOAN DEFAULT STATUS – Here are some important reminders for the members who availed the Social Security System’s loan condonation offer.
Whether you already have an existing Loan Consolidation account with the Social Security System or are planning to avail of the SSS Conso Loan Program from the social insurance giant, it is important to understand the situations that could place your account under a default status.
No borrower would want their loan to fall into default. It is important to realize that the Conso Loan is a valuable opportunity to settle outstanding loans and have penalties waived once the combined short-term loans are fully paid.
However, truth be told that there are still circumstances that may make repayment difficult. Thus, this is where the knowledge about the SSS Conso Loan in default status should set in.
When is an SSS Conso Loan considered in default? These are the situations that could lead to default status such as the following:
- if you fail to pay in full the agreed one-time payment or down payment within the approved period
- if you fail to pay obligations 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 commit any fraudulent acts against SSS or violate its regulations and guidelines
What are the consequences if your SSS Conso Loan if it falls into a default status? According to the Social Security System, the member-borrower will be required to settle the full amount of the Conso Loan. This amount includes the condoned portion of penalties. It should be paid without the need for a demand or notice from the social insurance giant.
Additionally, the outstanding balance which is consists of the unpaid principal and interest will be deducted from any benefits the member avails. These include:
- SSS Sickness Benefit
- SSS Maternity Benefit
- SSS Disability Benefit
- SSS Retirement Benefit
- SSS Death Benefit
A member-borrower with a Conso Loan account in default statusmay re-apply to the program after two (2) years from the date of full payment of the defaulted loan account. Beyond the Conso Loan and the listed benefits, the social insurance giant also provides other loan options such as the SSS Cash Loan, the SSS Housing Loan, and the SSS Calamity Loan.