Lower interest rates from SSS
Because of the downward trend in banks’ lending rates the Social Security System (SSS) has reduced its interest rates on its social and business loans.
The lowered interest rates on loans by SSS is aimed to boost the agency’s lending facility, and took effect last July 1, 2009.
“We lowered our interest rates to generate more employment by helping enterprise expand their operations and members set up their businesses. This also benefits companies affected by the global financial crisis,” said SSS president and chief executive officer Romulo Neri.
The lowered interest rates on loans are as follows:
- for loans with less a term of one year or less – 5.5% from a previous 6%
- loans with a term of over one to three years – 6.25% from a previous 7%
- more than three years, and up to five years loans – 7% from a previous 8%; and
- loans with more than five-years’ term – 8.5% from a previous 9%
Neri said interest rates are fixed for loans with a term of five years or less, while those with longer terms with have their rates reviewed after five years.
The pension fund, through its Special Financial Program for small and medium enterprises, offers loans of up to P50 million. While large-scale companies can avail of loans from P51 million to P500 million under the agency’s SSS’ Industry Loan Program. SSS likewise offers special loans to tourism projects, hospitals and educational institutions.
Interested borrowers may proceed to the SSS’ accredited banks to inquire about the SSS’ business and social loans programs.
August 9, 2009
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Tags: business loans, interest rates, lowered loands, pension fund, Philipppines, SSS · Posted in: finance, Law, money, Philippine business news, Philippines
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