Go endorses SSS microloan program
The Social Security System’s (SSS) microloan program, which is slated for a pilot rollout in the first half of 2026, was designed to protect pensioners from predatory high-cost informal lending, Finance Secretary Frederick Go said.
In a statement on Friday, Go described the initiative as a “safe, affordable and convenient” option for members facing immediate cash needs, with flexible repayment terms.
“This program will help steer members away from loan sharks and other high-cost, predatory lending schemes, while promoting responsible borrowing,” said Go, who chairs the Social Security Commission.
“This microloan program reflects our continued commitment to strengthening social protection and advancing financial inclusion for all Filipinos,” he added.
The program comes amid concerns that many Filipinos turn to high-cost informal lenders, often facing abusive and exploitative practices that leave borrowers trapped in debt cycles.
It follows the Department of Finance’s recent crackdown on predatory lending, after former Finance Secretary Ralph Recto ordered the Securities and Exchange Commission to cap interest rates and other fees.
Terms
The SSS first announced the program’s implementation in 2026 on Dec. 24, following the Commission’s approval of its guidelines.
Loans will range from P1,000 to P20,000, depending on a member’s average monthly salary credits. Repayment terms span 15 to 90 days, with an interest rate of 8 percent a year, or 0.67 percent per month.
SSS will partner with participating banks and financial institutions to deliver the program through digital platforms. The agency had already launched SSS LoanLite with the Union Bank of the Philippines in September as part of its push for broader digitalization and financial inclusion.
Eligible members include pensioners aged 18 to 65 with at least 12 paid monthly contributions. Applicants must not have pending or settled retirement, total disability, or death benefit claims.
Members with existing SSS loans may still qualify, subject to program limits.
