The SSS continues to support members struggling with unpaid loans through its Loan Condonation Program. Whether you’re dealing with salary calamity or emergency loans this guide explains everything you need to know.
Who Is Eligible?
As per the SSS program launched in October 2022 you qualify if you:
- Have a past-due short-term member loan (salary calamity SLERP emergency or restructured)
- Have not received any final SSS benefit (retirement or permanent disability)
- Are not disqualified for fraud
- Have an active My.SSS account
How the Condonation Works
- Outstanding principal and interest are merged into a single consolidated loan
- All unpaid penalties are waived once the loan is fully paid
Payment Options
One-Time Payment
- Pay the full consolidated loan within 30 calendar days after approval
- Available for loans up to ₱5000 only in the one-time scheme
Installment Plan
- Pay at least 10% down payment within 30 days after approval
- Remaining balance paid in equal monthly installments from 6 to 60 months depending on amount
Terms & Conditions
- Interest: 10% per year on a diminishing principal
- Late penalty: 1% per month on overdue installments
If you miss payments (like failing to pay the down payment or missing more than six monthly amortizations) the loan goes into default. The unpaid portion including uncondoned penalties becomes due immediately.
What If You Default?
- SSS may deduct the remaining balance from your future short-term or final benefits (sickness maternity disability retirement or death benefits)
Also See: How to Set an Appointment in SSS Online Portal 2025
A Look at 2025 Programs (Restructuring + Condonation)
August 2025 Restructuring Program
- Launched Aug 1 2025 for members with past-due loans as of June 30 2025
- Offers 100% penalty condonation potential interest reductions and repayment terms up to 60 months
June 2025 Restructuring & Condonation Rollout
- Applies to members with past-due salary calamity emergency or restructured loans as of March 2025
- Full waiver of penalties flexible repayment from 6 to 60 months and lower interest around 6% per annum
- Applications accepted online via My.SSS starting July 1 2025
Quick Reference Table: Comparing Programs
| Program | Launch Date | Eligibility Cut-off | Penalty Waived | Repayment Period | Interest Rate |
|---|---|---|---|---|---|
| Condonation Program (2022) | Oct 4 2022 | N/A | 100% (upon full payment) | 30-day lump or up to 60 mo | 10% p.a. |
| Restructuring Program (Aug 2025) | Aug 1 2025 | June 30 2025 | 100% | Up to 60 months | May include interest reductions |
| Restructuring & Condonation (Jun 2025) | Jun 2025 | March 2025 | 100% | 6 to 60 months | ~6% p.a. |
Steps to Apply (General Process)
- Log in to your My.SSS account
- Go to E-Services → Apply for Loan Penalty Condonation or Restructuring
- Submit your application online
- Wait for approval notice and payment terms
- Pay in full or make down payment as instructed
- Complete the installment plan if chosen
Community Insights
“This helped my mom’s ₱9K loan shrink down to ₱22K from ₱81K! Definitely worth applying.”
“I thought condonation was once in a lifetime but there’s nothing official saying so.”
“Applied and got approval right away via email.”
FAQs
Q: Can I make a partial payment?
No. Partial payments whether for lump sums or 50% down payments cancel the condonation application. The amount you paid gets applied as a regular payment against your oldest loan.
Q: Do I lose my final benefits if I apply?
No. But failure to comply with payment terms may lead to deductions from those benefits.
Q: Can I reapply later if I default?
Yes. You may reapply subject to applicable sanctions and SSS policies.
Conclusion
The SSS Loan Condonation and Restructuring Programs are strong lifelines for members weighed down by unpaid loans. They offer major relief through penalty waivers flexible payment plans and lower interest rates. If you’re past due on your loans check your eligibility log in to My.SSS and apply to regain your financial footing.
