The Social Security System (SSS) has introduced major updates to its Calamity Loan Program (CLP) for 2025. These changes are aimed at providing faster financial assistance, lower interest rates, and greater flexibility to members affected by natural disasters such as typhoons, floods, and earthquakes.
Key Changes in the 2025 Calamity Loan Program
One of the most notable updates is the reduction in the annual interest rate. Members with a good repayment history will now enjoy a 7% interest rate per year, down from the previous 10%. This change is designed to lessen the financial burden on borrowers and make repayment more manageable.
The program has also revised its loan renewal policy. Members can now renew their calamity loans after six months, provided their current loan is in good standing. Previously, renewal was only permitted after full repayment, limiting access to ongoing financial support.
In addition, the activation period has been significantly shortened. Members can now apply for loans within just seven working days following a disaster declaration, compared to the previous waiting period of around one month. This ensures timely support when it is most needed.
Eligibility Requirements
To apply for a Calamity Loan, members must meet the following criteria:
- Have at least 36 monthly contributions, including six posted in the last 12 months for regular members.
- Self-employed, voluntary, and land-based OFW members must have at least six contributions under their current membership type.
- Be under 65 years old at the time of application.
- Be registered on the My.SSS portal to submit an online application.
- Have no unpaid or restructured loans and no disqualifications due to fraud.
- For employed members, employers must be current with contributions and loan remittances.
These requirements ensure that the program benefits active and qualified members.
Loan Amounts and Terms
The maximum loan amount is equal to one Monthly Salary Credit (MSC), calculated as the average of the last 12 MSCs and rounded up to the nearest 1,000 pesos. The maximum loanable amount remains 20,000 pesos.
Loans are repaid over two years through 24 equal monthly installments. The first payment is due in the second month after loan approval. A 1% service fee is deducted before loan release, while late payments incur a 1% monthly penalty. Loans unpaid after 24 months are subject to a 10% annual interest rate plus the 1% monthly penalty.
Faster Loan Disbursement
The 2025 updates make it possible for members to receive loan proceeds within seven working days after a disaster. This improvement is achieved through better coordination between SSS branch offices and the Member Loans Department, ensuring that support reaches members quickly.
Applications can be completed entirely online via the My.SSS portal or the SSS mobile app. Funds are disbursed through an active UMID ATM card or a registered bank account enrolled in the Disbursement Account Enrollment Module (DAEM) that supports PESONet transfers.
Program Budget and Reach
In 2024, the SSS released nearly ₱10 billion in calamity loans to more than 560,000 members. For 2025, the agency has increased the budget to ₱20 billion to reach even more members and provide quicker financial relief during emergencies.
Benefits of the New Updates
The 2025 Calamity Loan updates provide several advantages to SSS members:
- Lower interest rates reduce repayment costs.
- Faster processing ensures timely access to funds after a disaster.
- Flexible renewal allows continued support for prolonged or repeated calamities.
- Increased funding enables more members to benefit from the program.
These changes reflect SSS’s commitment to making its Calamity Loan Program more responsive, accessible, and supportive for members facing financial difficulties during natural disasters.