SSS Calamity Loan Assistance Program (CLAP) - Calamity loan comes in handy to help you overcome the recent financial constraints
COVID 19 has brought about a financial crisis globally. It is, therefore, essential to improve your social security system membership. If you have had financial constraints or lost your source of income during this pandemic, you should no longer worry! The social security system has established the calamity loan assistance program, which will help those adversely affected financially by the coronavirus disease.
What is the maximum amount and loan coverage terms?
The average monthly salary credit for the past year is a significant determinant in the amount of loan you can apply up to P20000. CEO Aurora C. Ignacio, the SSS resident, points out that the loan repayment of this program will be 27 months. Also, the CLAP will attract 6 percent interest per year and a three-month moratorium.
In general, the payment term of CLAPs is 24 months, with an interest rate of 10% yearly.
Once you have you have your COVID-19 calamity loan approved, loan amortizations will begin after for months. You will not incur advance interest charges for the loan. There will be deductions and charges of only one percent for the service fee from the loan proceeds.
If you fail to make payments on due time, the loan will bear a penalty of 1% of the total loan amount per month.
Eligibility and requirements
For you to be eligible for the loan, you need to have a minimum of 36 monthly deposits. Before the application, you need to have 6 of the contributions made within the past year. Besides, you should not have unpaid loans under previous CLAPs or other loan restructuring programs. However, you're not eligible for the credit if you have had retirement or permanent disability benefits.
You don't have to provide a proof of residence of the area deemed to have the calamity as it is with other calamity loan programs. This is because the pandemic has hit the whole country. The SSS requires you to submit a copy and an original of one of the original identification documents. Identification documents may include Driver's License, NBI clearance, and passport.
How to apply for CLAP
To begin with, you need to be a registered member of the My.SSS web portal on the social security system website at www.sss.gov.ph. The SSS president confirms that coronavirus is here to stay. Therefore the social security system has established an online s platform in the My.SSS web portal where you can apply for the loan. Therefore, there will be a reduction in face-to-face interactions in all social security system branches. On approval, you can receive the loan proceeds through the Union Bank of the Philippines quick card, form check sent to an email address of your preference, or via the Unified Multipurpose Identification card.
If you have been a contributing member of the SSS and have recently lost your job, you're also not left out. You will receive unemployment benefits so long as you're not above 60 years old.
The application for the CLAP loan is valid till 14th September 2020. The coronavirus disease 2019 pandemic has a more significant impact in the Philippines than any other calamity in the recent past. According to the Social security system, the calamity loan assistance program (CLAP) will accommodate about 1.74 million applicants.