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To help the members affected by the calamity brought by tropical storm Ondoy, the Social Security System (SSS) has lowered its interest rate for loans on home repairs and improvements. The agency said loans for home repairs and home improvements now have an interest rate of 9%, 4 notch lower than the previous 13% rate. The maximum amount of loan is P300,000 for house repair and improvements, payable for up to 20 years.

SSS president and chief executive Romulo Neri said, “We lowered the interest rate as a special consideration to our members whose homes were damaged by the storm that brought widespread flood in Metro Manila and other provinces last weekend.”

Neri said that the loan can be used for major repairs, extension and expansion, construction of concrete fences and steel gates, and for installation of deep well and motor pumps. Acceptable collateral for the loan is a first mortgage on the lot and house to be repaired or improved, or a joint mortgage with SSS-accredited banks.

“We further liberalized our policy by allowing members to borrow even with existing house repair and improvement loans with SSS or the National Home Mortgage Finance Corp.” according to the pension fund head, the total amount of the members first and second loans must be within the P300,000 limit.

Active members with at least 12 months of continuous contributions or a minimum total of 24 monthly premiums can apply for the loan. Payments can be made either through salary deductions for employed members, or through the issuance of post-dated checks for self-employed and voluntary members.

The deadline for filing of loans applications is on December 31, 2009.

Applications can be submitted to the SSS corporate headquarters in Diliman, Quezon City, especially for members in the National Capital Region (NCR), while those outside NCR can go to the Housing and Asset Management Section of SSS cluster offices in major cities.