Social Security Corporation to offer soft loans to retirees

AMMAN — The Social Security Corporation (SSC) will offer its retirees soft loans worth JD20 million for personal or business expansion purposes, it said on Tuesday.

Labour Minister and SSC Chairman Ali Ghezawi said the move was part of the corporation’s social responsibility towards its retirees, noting that over 75 per cent of SSC retirees receive monthly pensions below JD400.

“This income is very low considering the current economic conditions,” he told reporters, noting that the soft loans seek to help retirees expand existing projects that could improve their economic performance. 

The move is part of the government’s executive economic programme to address poverty and unemployment, Ghezawi said. 

The minister said the Social Security Investment Fund (SSIF) will transfer the money allocated for the loans to the corporation in stages, starting with JD1 million.

He added that interest rates will be 5 per cent for personal loans and 3.5 per cent for loans to expand existing businesses.

SSC Director General Nadia Rawabdeh said that around 163,500 individuals are eligible for the soft loans, explaining that applications would open on August 1.

Applicants are allowed up to 10 times their retirement pensions with a ceiling of JD10,000, provided that the monthly pensions do not exceed JD2,000, said Rawabdeh, and payment can extend over 60 months or until the beneficiary reaches 70 years of age.

The corporation will keep 0.5 per cent of the interest rate as insurance in case the beneficiary dies, and will transfer the remaining interest to the SSIF quarterly, she said, and beneficiaries’ heirs would not be required to complete the payment.

“The corporation will regularly review interest rates and regulations governing the lending process in order to better serve retirees,” Rawabdeh told reporters. 

Retirees receiving soft loans would still receive at least 30 per cent of their pensions to guarantee decent living conditions, she said.

The initiative is open to widows receiving shares from the pensions of their husbands, in addition to early retirees and those who retired due to natural or work-related disabilities, Rawabdeh added, noting that different insurance measures will be taken to secure payment.