MANILA - State-run pension fund manager Social Security System (SSS) has lowered its interest rate for loans on home repairs and improvements to help members affected by tropical storm "Ondoy" (international code name Ketsana).

In a statement released Friday, SSS said loans for home repairs and improvements now have an interest rate of 9% from the previous 13%. The pension fund manager grants a maximum loan of P300,000 for house repair and improvements, which is payable for up to 20 years.

"We lowered the interest rate as a special consideration to our members whose homes were damaged by the storm that brought widespread floods in Metro Manila and other provinces last weekend," SSS president and chief executive Romulo Neri said.

According to Neri, the loan may be used for major repairs, extension and expansion, construction of concrete fences and steel gates, and for installation of deep well and motor pumps. He said an acceptable collateral is a first mortgage on the lot and house to be repaired or improved, or a joint mortgate with SSS-accredited banks.

"We further liberalized our policy by allowing members to borrow even with existing house repair and improvement loans with SSS or the National Home Mortgage Finance Corp.," Neri said, adding that the total amount of their first and second loans must be within the P300,000-limit.

The loan is open to active members with at least 12 months of continuous contributions or a minimum total of 24 monthly premiums. Payments are made either through salary deductions (for employees) or through the issuance of post-dated checks (for self-employed and voluntary members).

SSS members in the National Capital Region (NCR) can apply for loans at the pension fund manager's corporate headquarters in Diliman, Quezon City. Those outside NCR, meanwhile, can go to the Housing and Asset Management Section of SSS cluster offices in major cities.

The deadline for filing of loan applications is December 31, 2009.

"Ondoy" dumped the heaviest rains in more than 40 years in Metro Manila and its neighboring provinces on Saturday. The tropical storm left 293 people dead while 42 remain missing, according to the National Disaster Coordinating Council (NDCC).

Total damage to property was initially estimated at P1.4 billion, while damage to roads and bridges were seen at P1.3 billion. Many homes and cars were also destroyed by the tropical storm, with the non-life insurance industry expecting claims to amount to billions of pesos.

The NDCC has already placed the entire Philippines under a state of calamity in anticipation of the onslaught of supertyphoon "Pepeng" (international code name Parma) on Saturday.