President Ferdinand Marcos Jr. announced that the Social Security System (SSS) is offering emergency loans this December to help members purchase essential goods and avoid predatory lenders.

The loans feature a 7 percent interest rate and a six-month payment moratorium, allowing borrowers to delay amortization payments for half a year.

“When you receive the loan from SSS, you don’t need to pay the amortization for the first six months to ease your burden,” Marcos said in a video message.

The President positioned the program as a safer alternative to “5-6” lending, an informal and often predatory money-lending scheme common among low-income households that charges high interest rates.