DOF: SSS program protects members from loan sharks

January 3, 2026 | 12:00am

MANILA, Philippines —   The new micro loan program of state-run pension fund Social Security System (SSS) aims to steer members away from loan sharks, other high-cost and predatory lending schemes, according to the Department of Finance (DOF).

In a statement yesterday, Finance Secretary Frederick Go said the loan program would promote responsible borrowing by providing affordable and convenient access to short-term credit for SSS members.

“Through the proposed SSS micro loan program, we are addressing the immediate cash needs of members by offering small, short-term loans at reasonable rates and with flexible repayment options,” Go said.

Under the program, SSS president and CEO Robert Joseph de Claro said the pension fund plans to roll out its microloan program, offering a safer and more affordable short-term borrowing option with tenors of 15 to 90 days and an interest rate of eight percent per year.

The pension fund will collaborate with participating banks and financial institutions to implement the program via their digital platforms, according to the DOF.

The finance department said that key features of the proposed program include loan amounts ranging from P1,000 to P20,000, determined by each member’s average monthly salary credit.

Eligible SSS members aged 18 to under 65, with at least 12 paid monthly contributions and no pending or settled retirement, total disability or death benefit claims, will have access to the program.

Meanwhile, members who currently have outstanding loans with the pension fund may still be eligible to participate in the program, provided they remain within the established loan limits and other program conditions.

“The SSS is currently finalizing the program guidelines, systems integration and partnerships with participating banks, with a pilot rollout targeted in the first half of 2026,” the DOF said.

Recent data showed that last year, SSS grew its earnings by 20 percent from January to September, driven by higher service and business income that strengthened its overall financial performance during the period.

Its net income amounted to P93.89 billion as of end-September last year, higher than the P78.31 billion in end-September of 2024.

Trending