You are entitled to borrow money to meet your short-term credit needs if you are a regular paying Social Security System (SSS) member.
The SSS salary loan is actually a cash loan granted to all SSS members, with the amount you can borrow depending on how many contributions you have made.
In addition to being approved for loans much faster, SSS members can take advantage of a much lower interest rate than non-government institutions because you technically are borrowing your own money.
Find out how to apply for a SSS salary loan, as well as the answers to all your questions
An SSS salary loan is what?
A SSS salary loan is a short-term loan that SSS members can borrow to meet their short-term needs, whether they are employed or self-employed.
The SSS salary loan program is the most popular and most used program of the Social Security System due to its quick approval process and low interest rate. SSS salary loans worth 29.98 billion were released and issued to 1,46 million members between January and September 2019 alone.
Who is eligible to apply for a SSS salary loan?
The following requirements must be met by the SSS member in order to obtain a salary loan:
Applicants must be under actually be 65 years of age at the time of application;
(Either employed or self-employed) and must be contributing to SSS regularly. To qualify for a one-month loan, the member must have paid 36 monthly contributions, 6 of which were made within the last 12 months prior to the month of the loan application. To qualify for a two-month loan, the member must have paid 72 monthly contributions, six of which must have been paid within the last 12 months before the month of application;
Contributions and loan payments must be remitted to the employer if you are employed, and you must keep the employer informed;
Has not been granted any of the final benefits, which include death benefits, retirement benefits, or total/permanent disability benefits;
SSS fraud is not the reason for disqualification.
My SSS salary loan program allows me to borrow a certain amount. How much can I borrow?
After paying 36 monthly contributions, members are eligible to apply for a salary loan equal to an average of the member’s 12 latest Monthly Salary Credits (MSCs), rounded to the next MSC in line, or as much as the member applied for, whichever is less. Since the maximum Monthly The maximum loanable amount is Php 25,000 for members who pay the maximum monthly contribution.
In the meantime, members who have posted 72 monthly contributions are eligible to apply for a salary loan that is equivalent to twice their average Monthly Salary Credit (MSC) in the last 12 months, rounded up to the next highest MSC, or the amount applied for, whichever is higher. As the maximum Monthly Salary Credit is currently 25,000, members in this category who regularly pay the maximum amount of contribution will be able to borrow up to Php 50,000.
It also should be noted that there will still be deductions from the final amount. 1% of the loan amount represents the service fee and the advance interest. The amount you will get after deducting the advance interest amount of Php 314.25 and a service fee of Php 370, for example, for a Php 37,000 loan, is Php 36,315.75.
The SSS Salary Loan Calculator.
If you earn PHP 18000 per month, let’s say. According to the contribution table, you earn between Php 17,750 and Php 18,259.99, which corresponds to a Monthly Salary Credit (MSC) of 18000.
You need to average your previous 12 Monthly Salary Credits (MSCs) to compute your loanable amount.
If you paid your contributions consistently for the last 12 months, you can borrow a maximum of Php 18,000 for a one-month salary loan and Php 36,000 for a two-month salary loan, provided you’re qualified for the loan.
Depending on how much money you need now, you can borrow the exact maximum loanable amount or anything lower than that.
A service fee of 1% and advanced interest will be deducted by SSS from the loan proceeds. If you have outstanding balances on other short-term SSS loans, they will be deducted from your SSS salary loan amount.