Sometimes, life makes it necessary to get a loan—you might lose your job unexpectedly, need to work on home repairs after a typhoon, secure hospitalization for medical emergencies in the family, or set up a small business for much-needed additional income.
Fortunately, it's easy to get an SSS salary loan. Thanks to the Social Security System's developed online system, active members can enjoy a hassle-free and convenient SSS online registration process and a quicker salary loan processing time.
If you’re planning to apply for an SSS salary loan, this article will tell you everything you need to know.
The salary loan is a cash loan that the Social Security System (SSS) provides to qualified employed members and currently-paying voluntary members to help them meet their short-term financial needs.
The SSS salary loan interest rate as of 2024 is 10% per annum , making it one of the loans with the lowest rates in the Philippines. It's computed based on diminishing principal balance, which means the interest will continue to be charged on the outstanding balance until the latter is fully paid.
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Can I apply for an SSS salary loan? How much can I borrow? And how much is the first loan of SSS?
Find the answers to such questions, as well as the eligibility requirements below.
Members with at least 36 months of total contributions, six of which have been posted in the last 12 months (before the month of application) can apply for a loan amount equivalent to one month’s worth of salary.
You can also apply for a two-month salary loan if you have at least 72 months of posted contributions, six months of which have been posted in the last 12 months before the month of application.
If you‘re employed, your employer must maintain up-to-date loan remittances and monthly contributions. If you're an individually paying member (self-employed, land-based OFW, voluntary member, or non-working spouse), you need to meet an additional requirement: at least six posted monthly contributions under your present coverage or membership type before your month of application. [1]
Lastly, if you've availed of other loans, including housing loans from the government's Unified Home Lending Program (UHLP), you also need up-to-date payments.
You can get a salary loan as long as you have not been granted yet any of these final SSS benefits: retirement, permanent disability, or death benefits.
The salary loan is available for qualified member-borrowers who are below 65 years old at the time of application.
You need to have a clean record (no disqualification by the SSS) to become eligible for the loan.
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You might be wondering: "Can I apply for an SSS salary loan online?"
Yes, you can! Employed members can apply online via the SSS website. The application must be certified by the employer. Self-employed and voluntary members can either apply online or head to an SSS branch near their place of residence or business.
If you don’t want to visit an SSS branch, you can apply for a salary loan online via the My.SSS portal. [3]
Check out our guide on how to register in SSS online if you haven’t done so yet. Learn how to register for an account and how to fill out the SSS loan form, just to name a few.
To learn how to enroll your bank account, check out this Disbursement Account Enrollment Module tutorial on YouTube.
The SSS now requires members applying for a loan to upload proof of account ownership when enrolling a disbursement account. This is to protect the My.SSS account from unauthorized transactions and to ensure that the loan proceeds will go to the SSS member who applied for the loan. [4]
For SSS salary loan disbursement through a bank account, you can upload any of the following:
Note: For disbursements through UMID-ATMs, bank accounts transferred from Sickness and Maternity Benefits Payment Module (SMBPB) to DAEM, and DBP Cash Padala via M Lhuillier, you don’t need to submit proof of account ownership.
Once you've registered in SSS online and enrolled your disbursement bank account, you can apply for a salary loan. Here's how:
Meanwhile, OFW members can apply for a salary loan at SSS Foreign Representative Offices within their current area. If unavailable, OFWs can designate a representative in the Philippines to submit their application and the required documents above.
To know the loan amount you qualify for, you have to find out first your number of posted SSS contributions. You can find all your contributions on the My.SSS portal. Just log in to your account and click on Inquiry . Select Contributions to see your total number of contributions.
According to the SSS, self-employed, voluntary, and overseas Filipino worker members' salary loan applications will be approved within "60 seconds + 5 clicks." [5]
You'll receive a notification message via email or notification inbox on your My.SSS account on the status of your loan application with the SSS.
Once your salary loan is approved, you'll receive a text message from the SSS.
If you see this message, it means that your salary loan has been approved. To check your SSS salary loan status, you can log in to your My.SSS account. Click on Inquiry and then Loan Info .
Here, you’ll see your SSS loan status and other loan details. You’ll also receive another notification via SMS if the loan proceeds have already been credited to your disbursement account.
The SSS disburses salary loan proceeds only to the member's enrolled disbursement bank account.
Borrowers need to pay their salary loan in 24 monthly installments. The monthly amortization begins in the second month following the date of the loan. It’s due on or before the SSS salary loan payment deadline detailed below.
