Sss Loans?????

[Jollygoodfellow]

Can anyone make sense of this? Is it Filipinos can get loans from the government? What are salary loans?   :89:

 

SSS launches prepaid card service for salary loans

 

MANILA, Philippines – The Social Security System (SSS) has launched a new service that allows its member to receive salary loans through prepaid cards.

 

The service, which is offered in partnership with Citi Philippines and Visa, will be available for members applying for salary loans at the Diliman, Quezon City and Buendia, Makati City branches, which SSS said both account for a high volume of salary loan applications.

 

“Members with the SSS Citi Visa Prepaid Card can get their salary loan funds electronically within days, instead of waiting for two weeks for their loan check to arrive through the mail. They no longer need to encash the check at the bank since they can already conveniently access their funds through ATM withdrawal, or by swiping their card for purchases at Visa-accredited merchants in the Philippines and overseas,” SSS vice president May Catherine Ciriaco said on Thursday.

 

The pension fund added that the prepaid card service aims to improve service delivery, enhance loan processing, and eliminate fraud as well as to address problems with misdelivered, stolen or lost checks.

 

To avail of the service, interested borrowers must first file their salary loan application at SSS branches in Diliman or Makati-Buendia.

 

After securing SSS' approval of the loan, members must then submit their SSS Citi Visa Prepaid Card Application Form and a photocopy of one government-issued ID to the designated Citibank lane at the same branch.

 

Ciriaco said the card will be released directly to the member on the same day, with the loan proceeds credited within three to four days.

 

The SSS Citi Visa Prepaid Card will be issued free to members, but a P150 will be charged as replacement fee for lost or damaged cards.

 

“The card will be valid for three years from the date of issuance. It is also reloadable, so members renewing their salary loans can get their new loan proceeds using the same prepaid card, as long as it is within the card's validity period,” Ciriaco said.

 

Members will be notified through text message if their loan has been loaded into their account.

 

The prepaid card is accepted at more than 15,000 automated teller machines (ATMs) and over 200,000 Visa partner merchants in the Philippines, as well as for online purchases.

 

Members can use their cards globally wherever Visa is accepted and to withdraw local currency at 2 million ATMs in more than 200 territories and countries worldwide.

 

“'Point-of-sale' purchases made using the card carry no additional charges or fees, while withdrawal charges will apply for all ATM transactions, depending on the bank owning the ATM…The prepaid card requires no maintaining balance and can be used for various promos offered by Visa partner merchants,” Ciriaco added.

 

http://www.abs-cbnnews.com/business/03/06/14/sss-launches-prepaid-card-service-salary-loans

[Thomas]

They didn't tell which interest, but if that's at an OK level, this is a big improvement  - when they add it in whole Phils  :)      - because it can reduce the need of the crazy expensive "5-6" loans. I wonder what do the loansharks think about that  :mocking:

[jpbago]

   The Philippines is backwards in many ways but when it comes to spending money, they are a month ahead.

 

   Here in city hall and DPWH, there is a money lender sitting in the hallway. Workers borrow from him and give him their ATM card with pin #. It is signed by the payroll clerk. On payday, the lender gets his loan plus interest first. I think this is common in most places where the wages are deposited to the workers bank accounts.

[Call me bubba]

 

Can anyone make sense of this? Is it Filipinos can get loans from the government? What are salary loans?   :89:

 

SALARY LOANS.. 1.

it is a way that others can borrow from their "SSS" in order to pay for unforseen cost or expenses.

2. to avoid the "loan sharks" that would keep the people in perpetual debt

OFFOFF

OFF TOPIC yet related to SSS loans,

SSS now offers EDUCATIONAL LOANS to its members so they can continue studies/schooling

http://www.sss.gov.ph/sss/index2.jsp?secid=2688&cat=6&pg=null

http://www.sss.gov.ph/sss/uploaded_images/circular/cirp2012_017.pdf

(of what i have read it was the result of a "vote for me" politician to be remembered)

 

The pension fund added that the prepaid card service aims to improve service delivery, enhance loan processing, and eliminate fraud as well as to address problems with misdelivered, stolen or lost checks.

 

Ciriaco said the card will be released directly to the member on the same day, with the loan proceeds credited within three to four days.

Members will be notified through text message if their loan has been loaded into their account.

 

 this is a 1st step(hopefully a good step) to REDUCE FRAUD/THEFT of the members checks(money)

and to help them use their funds more safely. 

 

They didn't tell which interest, :mocking:

 the interest rate is pretty reasonable it appears to be 10%

 

 

listed below is a sample of a loan

 

 

. LOAN AMOUNT PhP 13,500.00

2. OTHER CHARGE(S) / DEDUCTION(S)     a. Service Fee (1% of loan amount) PhP 135.00  

b. Balance of previous loan, if any PhP 0.00

3. NEW PROCEEDS OF LOAN (items 1 less item 2) PhP 13,365.00

 

Total   14,950.96   1,450.96   13,500.00  

Edited March 8, 2014 by Pittman apartments Sgn

[Thomas]

 

 

They didn't tell which interest, :mocking:

 the interest rate is pretty reasonable it appears to be 10%

I hope it's 10% per YEAR. In Phils they often tell interest per MONTH, so it SOUND less...  (I believe SSS loans are per year, because it's SSS and max allowed interest per month according to the law is 2.5 % according to a law student.)

 

Paying back the loan amount in the END of the loan period (?)   If paying back the loan amount regularly DURING the loan period (as it is for "5-6" loans) then the effective interest is around the double.