SSS taps UnionDigital Bank to widen access to short-term loans

Insider Spotlight

• SSS members can borrow between P1,000 and P20,000, subject to their eligible SSS record
• The loan carries an 8 percent annual interest rate, equivalent to about 0.67 percent monthly, plus applicable fees
• UnionDigital Bank is the first participating financial institution to offer SSS LoanLite, with OFWs among the members it particularly aims to serve
  
  
  
  

Greater access to small, short-term loans could give qualified Social Security System (SSS) members another source of funds for urgent expenses, particularly Filipinos who may face barriers to conventional credit channels.

UnionDigital Bank, the digital banking arm of Union Bank of the Philippines, has become the first participating financial institution to roll out the SSS Micro Loan Program, or SSS LoanLite, through its mobile application. 

The program places particular emphasis on overseas Filipino workers (OFWs) while remaining available to qualified SSS members.

Short-term financing option

LoanLite provides eligible members with loans ranging from P1,000 to P20,000, based on their SSS record. Repayment periods range from 15 to 90 days, giving borrowers a short-term financing option for immediate requirements.

The loan charges interest of 8 percent per annum, or approximately 0.67 percent per month, in addition to applicable transaction and add-on fees.

Interest and applicable fees are deducted from the proceeds. Borrowers are shown the loan amount, net proceeds and repayment schedule before they accept an offer.

Danilo "Bong" Mojica II

President and CEO, UnionDigital Bank

Accessible financing for OFWs 

“SSS LoanLite is a gateway to financial empowerment for Filipinos,” UnionDigital Bank president and chief executive officer Danilo “Bong” Mojica II said in a press statement.

“This product is about giving Filipinos, especially our OFWs, a practical way to move forward when they need it most. We know how important it is to have access to timely financial support. By integrating SSS LoanLite into the UD app, we are making that support simpler, more accessible, and within reach wherever they are in the world,” he added. 

How it works

Applicants need a UD Save account to access eligible loan offers through the bank's app. Once a loan is successfully disbursed, net proceeds are credited directly to that account.

Borrowers can fund their UD Save accounts before the due date for automatic debit. They may also repay through InstaPay or PESONet using another bank or e-wallet.

Smaller-value credit

The arrangement combines SSS eligibility records with digital loan distribution, potentially extending access to smaller-value credit without requiring qualified members to use a physical banking channel. —Vanessa Hidalgo | Ed: Corrie S. Narisma