Emilio de Quiros Jr., SSS president and CEO, said in a statement that under amended rules on housing loans, individual members can now borrow up to P2 million—double the amount previously allowed.
“The revised guidelines aim to align SSS housing loan programs to current industry practices,” De Quiros said.
“Our longer payment terms and fixed interest rates also make SSS loans competitive to lending facilities offered by other institutions such as banks,” he added.
Also, the SSS chief said the pension fund slashed its interest rates by as much as 5 percentage points to help members gain wider access to decent shelter at affordable terms.
Based on the new schedule, a loan of P400,000 carries an interest of 8 percent, down from 9 percent.
Loans of more than P400,000 and up to P1 million cost 9 percent and this rate is no longer subject to review every five years.
In the previous loan schedule SSS members who borrowed an amount between P400,000 and P500,000 paid 13-percent interest, while those who borrowed more than P500,000 up to P1 million paid 14-percent interest.
In both cases, the interest rate could be changed every five years, depending on the history of payments.
Under the new schedule, the SSS is offering loans of more than P1 million and up to P1.5 million, and charging 10 percent interest.
For all new loans, “fixed interest” now means no change for 15 years, although individual loans can go as long as 30 years.
Loans taken out by overseas Filipino workers will have a maximum term of 15 years, while loans to fund apartment, dormitory or home repairs and improvement can go as long as 20 years.
Loans for housing development can extend up to five years, as with loans whose borrowers are 60 years old at the time of application.
“We also increased the P300,000 limit on house repair and improvement loans to P1 million,” De Quiros said. “Among those who will benefit are members whose homes were damaged by natural calamities and families who want to expand or renovate their houses.”
Further, the SSS lowered its 14-percent interest rate to 11 percent for entrepreneurs and developers of subdivisions, condominiums and other residential properties.