FOR SSS MEMBERS: LOANS FOR HOUSING REPAIRS AND IMPROVEMENTS

What is the Housing Loan for Repairs and/or Improvement?
The Housing Loan for Repairs and/or Improvement is a lending program of the Social Security System (SSS) available either directly from the SSS or through its accredited participating financial institutions (PFIs).

For what purpose may the loan be used?
The loan may be used:

1. for major repairs, particularly for dilapidated and structurally unsafe housing units;
2. to extend, expand or enhance the economic and aesthetic value of an existing house. Said improvements should be permanently attached to the house;
3. to complete an occupied bare house;
4. to construct a concrete fence and steel gate; and,
5. to install a deep well and motor pump.

Who are qualified to borrow?
A borrower is qualified to borrow if he:

• is an active SSS member with at least 12 months' continuous premium contributions or at least 24 months' total contributions;
• is up-to-date in his amortization payments in all member and housing loans with the SSS. If he has an existing housing loan which has been restructured, he must submit a copy of the Supplemental Mortgage Contract;
• has not previously been granted a repair or improvement loan by the SSS; and
• is not more than 65 years old.

How much is the loanable amount?
The maximum loanable amount shall be the lowest of the following but shall not exceed P300,000:

• Amount applied for;
• Amount justified by the paying capacity;
• Actual need as determined by the SSS; and
• Ninety per cent of the appraised value of the property to be mortgaged.

What is the interest rate for the loan?
The interest rate for the loan will be 13 per cent per annum, subject to review every five years.

What is the term of the loan?
The loan is payable up to 20 years, but, it should not exceed the economic life of the house after repairs and/or improvements are introduced as determined by the SSS or PFI, nor the difference between the age of the applicant and 70.

For employee-borrowers, the Mandatory Payroll Deduction System shall be adopted as mode of repayment for loans filed directly at the SSS.