SSS looks to max out loan disbursements

THE SOCIAL Security System (SSS) is aiming to grow its total loan portfolio to fill the amount allowed under its charter. “By the end of the year, [the fund] will be around P1.5 trillion. So, you’re looking at about P300 billion in loans,” SSS Senior Vice-President of Lending and Asset Management Group Pedro T. Baoy said at a press briefing on Monday. He added that this amount can increase in line with the rise in its reserve fund. According to its charter, the SSS is allowed to have a loan portfolio amounting to up to 25% of its total reserve fund. Mr. Baoy said they are studying if they can increase the loan threshold. “We are reviewing it, but it takes Congressional approval to do that. So, for our charter, we are limited to about 25%.” As of September, the state pension fund had disbursed P170 billion in loans, led by salary loans, calamity loans, and emergency loans. “Since 2016, we have launched about 41 salary loans, calamity loan programs, and emergency loans,” Mr. Baoy said. For this year, the SSS has released salary loans to some 150,000 borrowers per month, equating to around P4 billion monthly. “So, our salary loan could reach P48 billion this year.” For its emergency loan program, the SSS allocated P26.68 billion, of which P20 billion has been disbursed year to date to 780,000 members. The state pension fund saw loan releases under this program shoot up to P100 million a day to almost 6,000 members due to the recent onslaught of typhoons. Mr. Baoy said the SSS’ total loan portfolio as of September was up by 5% from the year-ago level, in line with the increase in its members. “What we released, we also collect. So it’s self-funding,” he said. He added that they have also seen an improvement in asset quality over the years, with collection efficiency now reaching 92% for new loans. “I can safely say that the new loans, because the Gen Z, Millennials, are very much aware or responsible about their credit. They have been paying, and we recorded a 92% collection efficiency. In fact, we have observed through our microloans that those borrowing are mostly young adults, 18-24 [years old]. You’ll be very surprised, most of them pay in advance.” Meanwhile, the SSS has disbursed P1.81 billion to 146,000 members under its microloan program as of September. SSS President and Chief Executive Officer Robert Joseph M. de Claro said they aim to release P10 billion under the microloan program by the end of this year. The state pension fund is also looking at earmarking another P40 billion for its energy sustainability loan that will be launched within the first quarter of 2027, Mr. de Claro added. The program will offer loanable amounts from P200,000 to P400,000 and repayment terms of four to seven years, and will initially cover 100,000 homes. — Aaron Michael C. Sy