April 17, 2008

SSS Loan

Posted in financial decisions, loaning at 12:27 pm by kimsan23

Yesterday I got to talk to the people from Human Resources at work. The conversation found it’s way into the topic of our local Social Security System. Everyone was telling me to get a loan. Of course, I’m not really interested in getting a loan but then something interesting came up.

I was told that if I qualify for a loan (I need to have at least 72 months of contributions) and I that if don’t use it, someone else will! Now what did that mean?! They explained that there have been cases when people who needed to loan applied, and all of a sudden were declined because the loan had already been taken out by someone else (rumor has it that sometimes, it’s even people from the system)! Weird thing is, it’s happened to my uncle! He tried to take out a 20k loan and was told that he had already loaned and that he wasn’t paying. I have no idea how that was resolved but I certainly hope it was fixed. Talk about identity theft Philippine style!

So, I filled out a form and will submit two IDs today to complete the requirement. My office will process the loan for me. Now of course, I’ll need to pay a 10% interest rate on the loan. I mean, the money has to go into something so that it earns more than that (10%) to make my loan worth while. The loan payment for this will be spread across 2 whole years – I have to get ready to feel that minor pinch whenever I get my paycheck.

So today, I’m looking into time deposits and mutual funds. My friends are suggesting mutual funds from Sunlife or Nippon — some of them said as much as 19% per annum. I’m gonna research a bit more about this option will definitely come back with an update.

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