SSS partners with UnionBank for micro loan program
THE SOCIAL SECURITY System (SSS) has partnered with Union Bank of the Philippines, Inc. (UnionBank) to launch a micro loan program to help boost workers’ access to credit.
The program called SSS LoanLite is targeted to be rolled out by the end of the year. Under the initiative, loans with terms from 15 to 90 days will be available, which are meant to help Filipino workers with their urgent financial needs.
“This will really help each Filipino, members of SSS, not to fall victim to loan sharks,” SSS President and Chief Executive Officer Robert Joseph M. De Claro said in a statement. “Through our partnership with UnionBank, we are taking a bold step toward protecting our members from exploitative lending and enhancing their access to responsible financial services.”
“We are also proud to be the first banking partner for SSS’ upcoming micro loan program — a short-term, socially responsive loan designed to support members in times of financial need,” UnionBank President and Chief Executive Officer Ana Maria Aboitiz-Delgado said.
The loanable amount under the program is at P5,000 to P20,000 and will depend on a member’s needs. They will have a rate of 8% per annum plus a service fee.
The application and approval process for the loan is fully digital, with the funds to be transferred directly to members’ UnionBank accounts or MySSS Cards.
SSS said they target to release P40 billion loans under the program within the next two years.
UnionBank’s net income fell by 40.54% year on year to P1.82 billion in the second quarter amid lower income from loans and higher provisions. This brought its first-semester profit to P3.25 billion, down by 38.86% from the same period last year.
Meanwhile, SSS posted a P1.13-trillion net loss in 2024, according to its financial statement posted on its website, wider than the P444.13-billion loss in 2023. However, before changes in policy reserves, it booked a net income of P90.25 billion last year, up from P83.13 billion in 2023. — A.M.C. Sy
