The Market Monitor Minding the Nation's Business
Social Security System (SSS) members can now apply for the agency’s digital microloan facility through UnionDigital Bank (UD), giving qualified private-sector employees faster access to short-term financial assistance.
SSS said last week that applications for SSS LoanLite are now being accepted through the UD mobile application.
The digital facility allows eligible employed members to apply for a loan without securing the employer certification normally required for conventional SSS short-term loans.
Members may borrow from ₱1,000 to ₱20,000, with the loanable amount determined by the average of their 12 latest Monthly Salary Credits.
Repayment terms are set at 15, 30, 60 or 90 days, with an interest rate of 8% per annum.
SSS President and CEO Robert Joseph de Claro said UnionDigital is the first of four participating financial institutions to offer LoanLite through its digital platform.
“After months of preparation, SSS LoanLite is finally here. Qualified members can now apply through the UnionDigital Bank mobile application, making access to short-term financial assistance more convenient and secure,” de Claro said.
The SSS is also coordinating with the three other participating financial institutions, which are expected to roll out the facility through their own digital platforms.
To qualify, members must have at least 36 total contributions, including six posted monthly contributions within the 12 months immediately preceding the application.
Applicants must also have no past-due Short-Term Member Loans or active SSS Micro Loan, maintain an account with the participating financial institution and meet other requirements involving existing loans, benefit claims and SSS account status.
“SSS LoanLite is part of our broader effort to expand access to formal financial services and protect our members from predatory lending,” de Claro said.
He said the partnership with UnionDigital is intended to provide qualified members with quicker, safer and more convenient access to credit.