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SSS Salary Loan Requirements

Salary loan eligibility requirements

You might be thinking of applying for SSS salary loan but wondering if you are eligible. Indeed, there are eligibility requirements when it comes to SSS salary loan. Our membership does not automatically entitle us to this kind of privilege.

I once availed of the salary loan, thus, I want to share some inputs about SSS salary loan eligibility requirements. Here are the guidelines to know if you are eligible to apply for SSS salary loan.

Must have 6 posted contributions for the last 12 months

To be eligible for a salary loan, a member must have at least six (6) posted monthly contributions for the last 12 months prior to the month of filing of the application. This means that the member must have paid at least 6 monthly contributions within 1 year before the month of the loan application.

Must have paid equivalent to 3 years of contribution

The member must also have paid a total of 36 monthly contributions which is equivalent to 3 years of contribution before he can avail of the salary loan. It does not have to be paid continuously. As long as the member has total paid contributions of 36 months, then, he can proceed with the salary loan application.

Must be under the age of 65

Furthermore, the member-borrower must be under sixty-five (65) years of age at the time of application (SSC Res. No. 434 dated 09 November 2005), has not been granted final benefit (total permanent disability, retirement, and death), and has not been disqualified due to fraud committed against the SSS.

Loan Description and Terms

1. One-month salary loan 

A one-month salary loan is proportional to the average of the latest MSC of the member within the 12 months prior to application and is payable for 2 years.

2. Two-month salary loan

A two-month salary loan is equivalent to twice the average of the latest MSC of the member within the 12 months prior to application and also payable for 2 years.

3. Interest

The loan interest will be 10% per year until fully paid by the member. The first year's interest will be deducted ahead of time from the loanable amount but the second year's interest will be added to the monthly amortization.

In case the member was not able to pay the monthly amortization on the specified due date, the loan amortization shall have a 1% penalty per month.

4. Service Fee

There is also a 1% service fee deducted from the loanable amount of the member during the disbursement.

5. Loan Renewal
The salary loan can be renewed only after the prescribed loan term which is 2 years. 

6. Amortization Payment Process 

Self-employed and voluntary members can pay the monthly amortizations to SSS office or to any authorized SSS payment partners on or before the 10th day of the 3rd month from the month the loan was released.

Employed members' monthly amortizations will be paid through their employers. The employers will start the salary deduction of their employee-borrower in the second month from the month the loan was released. The employers will, in turn, pay the remittances to any SSS branch or SSS payment partners still on or before the 10th day of the applicable months.

If the member-borrower got a new employer or a new job, it is his/her duty to inform the employer about his SSS obligations, so the new employer can deduct the amortizations from his/her monthly salary.

In case of death, all the amortizations, interests and penalties will be deducted from the benefit the primary beneficiaries will receive.

If you are employed and eligible to apply for a salary loan, you can actually apply through the SSS website.

If you have further questions, don't hesitate to put in the comment sections below, and will try to get back to you as soon as we can.

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