THE APARTMENT / DORMITORY LOAN PROGRAM

What is the Apartment/Dormitory Loan Program?

The Apartment/Dormitory Loan Program is a lending program of the Social Security System (SSS) available through its accredited participating financial institutions (PFIs).
Drawdowns on the fund will be made by a PFI on a project-to-project basis upon submission of required documents and upon review by the Real Estate Department.

Who may borrow under this program?
· active SSS members of good standing with at least 12 months continuous contributions or at least 24 months total contributions
· not more than 65 years old
· must be up-to-date in the payment of all due SSS loan amortizations
· his employer must also be up-to-date in the payment of monthly contributions and loan remittances
· also qualified to borrow are corporations and duly registered organizations and associations that are SSS members in good standing with at least 12 months of membership
· self-employed SSS members who meet the requirements are also qualified, provided they will execute an affidavit of commitment to continue paying their monthly contributions.

For what purposes may the loan be used?

The loan may be used to construct dormitories, boarding and lodging houses, apartments and other residential buildings intended to be rented out.
In case of apartments, a minimum of three units is required.
For dormitories, utilities and services for the use of boarders should be provided.

Where can the projects be located?

The project must be within Metro Manila and environs, or, regional growth centers in the country.
The site must be within a five kilometer radius from existing colleges or universities. Priority will be given to sites nearer the colleges and universities.

How much is the loanable amount?

The maximum loanable amount is P20 million which will be released on a one time basis.
The member may borrow up to 70 per cent of the appraised value of the land and building to be constructed but not to exceed 100 per cent of the building construction cost.

What is the term of the loan?

The loan is payable within 20 years but not to exceed the economic life of the building, including a one-year grace period on the repayment of principal.
Quarterly interest payment starts on the first quarter from the date of full release; thereafter, quarterly amortization starts on the fifth quarter.

What is the interest rate of the loan?

The loan has an interest rate of 13 per cent per annum, subject to review every five years. The gross receipt tax is shouldered by the borrower.

What are the acceptable collaterals for the loan?

The loan should be secured by a first mortgage on the land for the project site and the building to be constructed.
The lot must have a clean title and registered under the Torrens System in the name of the borrower and/or his spouse, or the corporation, or the association.
The loan may be secured by any lot collateral acceptable to the PFIs for loans of P5 million and below.

Source: www.sss.gov.ph