MANILA -- The Social Security System (SSS) is reducing the interest rates for salary and calamity loans.

In a statement, the SSS said that salary loan interest rate will fall to 8 percent while calamity loan interest rate will slide down to 7 percent. Both interest rates are currently at 10 percent.

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The SSS said it hopes to implement the reduced interest rates starting July. This, however, will only be for members who have not availed of the penalty condonation in the past 5 years – in other words, those members of good credit quality.

The SSS also said it wants to expand its pension loan program for surviving spouse pensioners. The agency said the maximum loanable amount shall be P150,000. The loan will be covered by Credit Life Insurance, with insurance premium to be deducted from the proceeds of the pension loan.

This is so that in the event of death of the loan borrower before full payment and end of the loan term, the loan balance will be fully paid. SSS said it hopes to include surviving spouse pensioners in the pension loan program by September.

Meanwhile, the SSS also said it is eyeing microloans for its members. The microloans may have a tenor of 15 to 90 days.

“Currently, we are bringing the idea of a micro credit loan facility among our partner financial institutions through meetings and brainstorming sessions and see if we can address such short-term cash needs of our members," said SSS President and CEO Robert Joseph de Claro.

The official said that once the agency finds a suitable framework, it will implement the microloan program.