The Calamity Loan Program for 2025 offered by the Social Security System (SSS) has the most notable changes aimed at improving the speed of financial release and improving the load terms offered to the borrowers. These changes are focused on providing immediate relief for people during typhoons, floods, and earthquakes.
Reduced Interest Rates Provide Relief!
For members of the SSS, this comes as positive news as the annual interest rate had been lowered from 10% to 7% for members in good standing. The new interest rate will allow financially disaster-stricken members to recover economically as the 3% reduction will ease the high repayment burden. clanonline
This adjustment in interest rate was made following the directive of the President of the Philippines, Ferdinand Marcos Jr. , to make government services more affordable to disaster-stricken Filipinos. The SSS had also made earlier adjustments by reducing the salary loan interest rate to 8% in April 2025. umatterucangethelp
Seven-Day Activation for Faster Relief!
The SSS also made the most notable and impactful changes by shortening the activation period for calamity loans to just seven working days after the declaration of a state of calamity, a vast improvement from the previous one month wait.
“Borrowers used to wait one month to get their loans, now it’s only seven days. Aside from this, the interest has also been reduced, which is a relief to the borrowers,” shared Department of Finance Secretary Ralph Recto, who is the ex-officio chair of the Social Security Commission. manilastandard
Increased options for borrowers with unpaid loans were also added as a minimum period of six months was introduced for loan renewals in the new 2025 guidelines, so long as the existing loan is cleared and not overdue.
Previously, members had to fully repay their calamity loans before becoming eligible for new assistance, even while grappling with another disaster. clanonline
This policy change understands the situation that the majority of Filipinos encounter, where multiple calamities occur back to back. This policy also ensures continued assistance over long recovery periods.
Application Requirements and Process!
Members who intend to avail the calamity loan must:
Meet the contribution requirement of 36 months, with 6 months posted in the last year
Not exceed the age of 65 at the time of application
Have an account on the My.SSS online portal
Have no outstanding or restructured loans
Subject to the his/her loanable amount, the member’s Monthly Salary Credit (MSC) of the last 12 months of his/her MSCs shall be computed and capped at ₱20,000. Payment is to be made in 24 equal monthly installments, commencing the month following loan approval. manilastandard
Doubled Program Budget for 2025
SSS plans to disburse ₱20 billion for calamity loans in 2025. This is in comparison to the almost ₱10 billion given to more than 560,000 members in 2024. With the increased budget, more Filipinos will be able to receive urgent financial aid during times of crises.