Grow Your Business

Do you have the motivation and the idea for a business but lack the cash? Getting the funding to start or expand your business is a hurdle for most aspiring entrepreneurs. You can try borrowing money from relatives and friends, the bank or if you've been religiously paying your contributions, the Social Security System (SSS).

SSS lowered its 14 percent interest rate to 11 percent for entrepreneurs and developers of subdivisions, condominiums and other residential properties. To be eligible, employers must have current contribution and loan payments and a record of profitability for the last three years.

The SSS has also cut down its interest rates and raised the maximum amount of its housing loans to help members gain wider access to decent shelter at affordable terms, a top official said. SSS President and Chief Executive Officer Emilio de Quiros, Jr. said members can now borrow up to P2 million, which is double the amount offered in the past, while annual interest rates were reduced by as much as five percent.

"The revised guidelines aim to align SSS housing loan programs to current industry practices. Our longer payment terms and fixed interest rates also make SSS loans competitive to lending facilities offered by other institutions such as banks," he said.

Employees, self-employed individuals and overseas Filipino workers with at least 36 contributions, including 24 months of continuous payment of premiums, and have no retirement or total disability claims can borrow. They and their spouse must have no delinquent SSS loans.

"We also increased the P300,000 limit on House Repair and Improvement loans to P1 million. Among those who will benefit are members whose homes were damaged by natural calamities and families who want to expand or renovate their house," de Quiros said.

The maximum term is 30 years for Individual Loans; 15 years for OFW Loans; 20 years for Apartment, Dormitory, House Repair and Improvement Loans; and five years for Development Loans. Borrowers aged 60 at the time of application will have a maximum loan term of five years.