As a regular paying member of the Social Security System (SSS), you’re entitled to borrow money to meet your short-term credit needs.
The SSS salary loan is a cash loan granted to all SSS members with the total amount you can borrow depending on the number of your contributions so far.
Since you’re technically borrowing your own money, SSS members have two advantages: Approval of loan applications is relatively faster and the interest rate is significantly lower compared to those offered by non-government institutions.
Know more about SSS salary loan, how you can apply for it, and the answers to all questions you’ve been itching to ask about this popular SSS loan.
Table of Contents
- What Is an SSS Salary Loan?
- Who Are Qualified To Apply for an SSS Salary Loan?
- How Much Can I Borrow From the SSS Salary Loan Program?
- What Are the SSS Salary Loan Requirements?
How To Apply for Salary Loan in SSS Online: 11 Steps
- 1. Go to the new SSS website and access the SSS Member portal
- 2. Log in to your My.SSS account with your user ID and password
- 3. Click the E-SERVICES tab and select ‘Apply for Salary Loan’
- 4. Choose your preferred electronic loan disbursement channel
- 5. Read the Disbursement Account Enrollment Module (DAEM) Reminder
- 6. Enroll your bank account or mobile number using the Disbursement Account Enrollment Module
- 7. Wait for your Disbursement Account Enrollment to be approved
- 8. Apply for a salary loan
- 9. Read or print the Loan Disclosure Statement
- 10. Wait for the notification that will inform you about the status of your SSS salary loan application
- 11. Claim the loan proceeds
- Tips and Warnings
Frequently Asked Questions
- 1. I can’t access my SSS online account because I’ve forgotten my user ID/password/email address. What should I do?
- 2. How long will it take to get an SSS salary loan?
- 3. How can I check or view the status of my SSS salary loan application?
- 4. How can I claim my SSS salary loan?
- 5. I got a new job and will start working soon. How can I transfer my SSS salary loan to my new employer?
- 6. I have an existing SSS loan. Can I still apply for SSS salary loan?
- 7. I’m a self-employed/voluntary member. Can I also apply for SSS salary loan?
- 8. How can I apply for SSS salary loan if I’m an OFW?
- 9. How can I pay my SSS salary loan?
- 10. The SSS salary loan is payable in how many years?
- 11. When does repayment of the SSS salary loan start?
- 12. How much is SSS salary loan interest?
- 13. How can I check the balance of my SSS salary loan?
- 14. How much is the penalty for the late payment of SSS loan?
- 15. What happens to unpaid SSS salary loan?
- 16. I have overpaid my SSS loan. How can I refund it?
- 17. Can I pay my SSS salary loan in full?
- 18. Can I pay my SSS salary loan in advance?
What Is an SSS Salary Loan?
In a nutshell, SSS salary loan is a cash loan that SSS members, whether employed or self-employed/voluntary, can avail of to meet their short-term needs.
Due to the fast approval process and low-interest rate, SSS salary loan is the most popular and most availed program of the Social Security System. In 2019 alone, a total of 29.98 billion worth of SSS salary loans were released and issued to 1.46 million members who availed of the said loans from January to September1.
Who Are Qualified To Apply for an SSS Salary Loan?
To avail of the salary loan, the SSS member must meet the following eligibility requirements:
- Must be under 65 years old at the time of application;
- Must be a regular paying SSS member (employed, currently contributing self-employed, or voluntary). To qualify for a one-month loan, the member must have paid 36 monthly contributions, 6 of which should be within the last 12 months prior to the month of filing of the application. Meanwhile, in order to avail of a two-month loan, the member must have paid 72 monthly contributions, 6 of which should be within the last 12 months before the month of filing of application;
- If employed, the employer must be updated when it comes to payment of contributions and loan remittances;
- Has not been granted any of the final benefits which include death, retirement, and total permanent disability benefit;
- Has not been disqualified due to fraud committed against SSS.
How Much Can I Borrow From the SSS Salary Loan Program?
Members who have paid 36 monthly contributions are qualified to avail of the one-month salary loan which is equivalent to the average of the member’s 12 latest posted Monthly Salary Credits (MSCs), rounded to the next higher MSC, or the amount the member applied for, whichever is lower. Since the maximum Monthly Salary Credit is currently 25,000, members who pay the maximum amount of monthly contribution can borrow the maximum loanable amount of Php 25,000.
Meanwhile, members who have paid 72 monthly contributions are qualified to avail of a two-month salary loan which is equivalent to twice the average of the member’s posted Monthly Salary Credits (MSCs) in the last 12 months, rounded to the next higher MSC, or the amount the member applied for, whichever is lower. Given the maximum Monthly Salary Credit is currently 25,000, members under this category who regularly pay the maximum amount of contribution can borrow the maximum loanable amount of Php 50,000.
Take note that the final amount will still be subject to deductions. These include the advance interest and a service fee equivalent to 1% of the loan amount. If you’re borrowing Php 37,000, for example, you will only get Php 36,315.75 after the deduction of the advance interest amounting to Php 314.25 and a service fee of Php 370.
How To Compute Your SSS Salary Loan
Let’s say you have a monthly income of Php 18,000. Based on the contribution table, your income falls within the salary range of Php 17,750 – Php 18,249.99 which has the Monthly Salary Credit (MSC) of 18,000.
In order to compute your loanable amount, you need to get the average of your latest 12 Monthly Salary Credits (MSCs).
Assuming that your income never changed and you paid your contributions consistently in the last 12 months, the maximum SSS salary loan you can borrow is Php 18,000 for a one-month salary loan and as much as Php 36,000 for a two-month salary loan, provided that you’re qualified for it.
Take note that you can borrow the exact maximum loanable amount or anything lower than that, depending on how much money you need at the moment.
From the loan proceeds, a 1% service fee and an advanced interest will be deducted by SSS. On the other hand, if you have an outstanding balance of another SSS short-term loan, it will be deducted from the amount of your approved SSS salary loan.
What Are the SSS Salary Loan Requirements?
In accordance with the SSS Circular 2019-0142, member-borrowers who want to avail of the SSS salary loan are now required to file the application online.
To complete the SSS salary loan application, you need the following:
- Internet connection;
- My.SSS account. If you haven’t registered and created an account yet, please follow this step-by-step guide;
- Preferred electronic loan disbursement channel where you want to receive the loan proceeds.
As of 2021, loan disbursement via check is no longer available. Instead, you can choose from any of the following disbursement methods:
- PESONet-participating bank. If you have an account with any PESONet-accredited bank, you can enroll it using the Disbursement Account Enrollment Module inside your My.SSS account. Make sure that you’re the sole bank account holder as joint accounts will not be accepted.
- e-wallet/RTC/CPO. In case you don’t have a PESONet-accredited bank account, you can also opt to receive the loan proceeds via GCash, PayMaya, DCPay Philippines, or DBP Cash Padala thru M Lhuillier.
- SSS-issued UBP Quick Card. Take note that UBP accounts linked with other government offices (e.g., Pag-IBIG Loyalty Card) are not allowed. UBP Quick Cards start with “10” and composed of only 12 digits. To avail of this free UBP Quick Card, please proceed to any of the following select SSS branches:
How To Apply for Salary Loan in SSS Online: 11 Steps
The SSS Circular 2019-014 has made it official that all SSS salary loan applications must now be filed online.
Walk-in application is only applicable to other SSS loans like Calamity Loan Assistance Program (CLAP), Educational Assistance Loan Program (EALP), and Emergency Loan Assistance Program (ELAP).
To know how to file your SSS salary loan application online, follow this step-by-step guide:
1. Go to the new SSS website and access the SSS Member portal
Unlike before when there were two My.SSS portals (the old and the new version), there is now only one website that has been consolidated to meet the members’ needs.
Upon landing on the page, you’ll be required to tick the box that says “I’m not a robot”. Then, click Submit.
There are three SSS portals you can choose from: Member, Employer, and Small Business Wage Subsidy Program. Since you’re an individually paying member, click ‘Member’ to access the SSSS member login page.
2. Log in to your My.SSS account with your user ID and password
After entering your user ID and password, verify your identity by ticking the box that says “I’m not a robot” and click Submit.
In case you’ve lost or forgotten your My.SSS user ID, password, or both, read this article to know how to recover it.
3. Click the E-SERVICES tab and select ‘Apply for Salary Loan’
4. Choose your preferred electronic loan disbursement channel
As explained in the previous section, you can receive the loan proceeds through any of the following options:
- PESONet-participating bank
- SSS-issued UBP Quick Card
If you want to get the loan proceeds using either of the first two options, you can enroll your account by clicking the link provided.
On the other hand, if you want to avail of the free UBP Quick Card, you can proceed to one of the select SSS offices where applications for this card are processed.
As of this writing, disbursement thru check is no longer available.
5. Read the Disbursement Account Enrollment Module (DAEM) Reminder
Member-borrowers who opt to receive the loan proceeds through either a PESONet-accredited bank account or an e-wallet will be provided a link to the disbursement account enrollment page (see the previous step). After clicking this link, you will first be given a copy of the list of reminders related to the Disbursement Account Enrollment Module.
You can give the document a quick read or download a PDF copy. Afterward, tick the box below that says “I certify that I have read and understood the foregoing reminders on account enrollment” then click “Proceed”.
6. Enroll your bank account or mobile number using the Disbursement Account Enrollment Module
After reading the DAEM reminders, you will then be directed to the main Disbursement Account Enrollment Module where you can enroll either your bank account or mobile number, depending on your preferred loan disbursement channel.
After providing your bank account details or mobile number, upload a supporting document containing your account name and account number. If you’re enrolling a bank account, you can provide a screenshot of your online banking account dashboard, provided it’s showing the name of your bank, your bank account number, and your account name which should be the same as the one provided in your SSS account.
Meanwhile, if you’re enrolling an e-wallet account like a GCash account, simply provide a screenshot of your mobile app account showing both your complete name and account number.
Once all the important details are provided, tick the box provided to give permission to SSS to use your personal information. Finally, click the “Enroll Disbursement Account” button.
7. Wait for your Disbursement Account Enrollment to be approved
The servicing branch will receive the supporting documents you submitted and send you an update within 1 to 2 working days.
If your Disbursement Account Enrollment is approved, you will receive an email and SMS notifications letting you know that the submitted proof of account has been processed and approved.
8. Apply for a salary loan
Now that your disbursement account has been approved, go back to your My.SSS account and click “Apply for Salary Loan” under E-SERVICES.
Double-check if your mailing address, mobile number, landline, and email address are all updated. If not, click here to update or change your account information.
Then, select the amount of salary loan you need. Take note that the maximum loanable amount will be automatically displayed. In case you want to borrow a smaller amount, simply click the drop-down menu and then select the exact amount that meets your current needs.
After selecting the amount you want to borrow, choose how you want to claim the loan proceeds. Since you already enrolled your disbursement account, simply select the exact bank account or e-wallet account you enrolled using the drop-down box provided.
After reading a few reminders, check the box that says “I agree to the Terms and Conditions” and then click “Proceed” to go to the next step.
9. Read or print the Loan Disclosure Statement
The Loan Disclosure Statement contains a summary of all the essential information about your SSS salary loan including:
- Net loan proceeds (loanable amount less the deductions);
- Balance of your previous loan (if applicable);
- Monthly amortization (principal + interest);
- Schedule of payment/due dates.
After reviewing the content of the Loan Disclosure Statement, click Proceed.
Review the ‘Certification, Agreement, and Promissory Note‘ and then click ‘Submit’.
Keep a copy of the transaction number for future reference. A confirmation message will also be sent to your email address showing the same transaction number.
10. Wait for the notification that will inform you about the status of your SSS salary loan application
After submitting your salary loan application online, please take note of the following:
For employees: Your employer will then be given 3 working days to certify (reject/approve) your salary loan. Once this step has been completed, you will then be notified either via email or SMS about the status of your application;
For separated, self-employed, OFW, and voluntary members: You will also be notified through email or text message whether your loan application has been approved.
To learn how long it takes to process the loan application (from filing to loan release), click here.
If you want to check the status of your loan application, here are different ways to do it.
11. Claim the loan proceeds
Once the loan proceeds are ready, member-borrowers can finally claim it through their preferred mode of claiming. For more information, read this.
Based on my personal experience, loan proceeds were credited to my bank account within 2 days after I received an email notification from SSS saying that my application was approved.
Tips and Warnings
- When enrolling your disbursement account, make sure to triple-check the information you’re providing before submitting the form. Supplying wrong or invalid information will lead to a longer processing time (at least 30 days) of your loan proceeds.
- When enrolling your PESONet-accredited bank account, double-check that you are providing your bank account number, and not your ATM card number. Also, ensure that the name in your bank account is the exact name you registered in your SSS account.
- Before choosing an e-wallet as your preferred disbursement method, ensure that the e-wallet account you’ll be enrolling is fully verified and has the maximum wallet limit.
Frequently Asked Questions
1. I can’t access my SSS online account because I’ve forgotten my user ID/password/email address. What should I do?
5. I got a new job and will start working soon. How can I transfer my SSS salary loan to my new employer?
- SSS reminds members: salary loan application now online. (2019). Retrieved 5 July 2020, from https://www.sss.gov.ph/sss/appmanager/viewArticle.jsp?page=NR2019_070
- Social Security System. (2019). SSS Circular 2019 – 014 or Guidelines on the Real-Time Processing of Loans.