Last Updated on 09/23/2020 by FilipiKnow
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 application is relatively faster and the interest rate is significantly lower compared to those offered by loan sharks.
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 SSS Salary Loan Online: 6 Steps.
- 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?
The minimum amount of SSS salary loan you can borrow is Php 500 while the maximum is either Php 20,000 (for a one-month loan) or Php 40,000 (for a two-month loan).
Your individual maximum loanable amount will depend on how many monthly contributions you’ve paid and what Monthly Salary Credit (MSC) your contributions are based on.
As this SSS contribution table shows, the Monthly Salary Credit (MSC) is used by SSS to determine the amount of a member’s monthly contribution. The MSC, in turn, depends on the salary range your monthly income belongs to.
The higher your income, the higher your MSC and the higher your MSC, the higher your monthly contribution.
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 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;
- UMID-ATM Savings Account/Unionbank of the Philippines Savings Account or Quick Card/Any Savings Account Enrolled with SSS/Local mailing address where you prefer to receive the loan proceeds.
If you want to receive the loan proceeds in the form of a check via mail, make sure that your registered mailing address is updated. You can update your address by logging in to your My.SSS account either via your web browser or through the SSS mobile app.
Otherwise, you can opt for electronic loan disbursement by enrolling your Unionbank of the Philippines (UBP) Savings Account/any savings account accepted by SSS (a link to online enrollment will be provided within the SSS member portal) or by first availing of UBP Quick Card at the following select SSS branches:
How to Apply for SSS Salary Loan Online: 6 Steps.
Time needed: 15 minutes.
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:
- 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.
- 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.
- Click the E-SERVICES tab and select ‘Apply for Salary Loan’.
If you’re eligible to apply for a salary loan, information about the said salary loan will show up.
For employed members, your employer and the loanable amount will be displayed. For separated, self-employed, OFW, and voluntary members, the loanable amount, as well as the member’s registered local mailing address, will be displayed.
- Select the loanable amount and choose how you want to claim the loan proceeds.
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. If you want to receive it through a check, make sure your local mailing address is updated (for separated, self-employed, OFW, and voluntary members). You can update your mailing address through the new My.SSS portal or the SSS mobile app.
If you’re an employed member who prefers to get the proceeds via mail, the check will be sent to your employer’s address.
On the other hand, members who prefer electronic loan disbursement must first avail of the UMID-ATM Savings Account/Unionbank of the Philippines (UBP) Quick Card. If you don’t have a Quick Card but have an existing Unionbank Savings Account Number or savings account from a different bank, you may register/enroll it through the link provided by SSS (see the screenshot below).
After enrolling your savings account, go back to the salary loan application page to choose the bank and bank account number you just enrolled so SSS will know this is where you prefer the loan proceeds to be sent.
Once done, tick the box that says “I agree to the Terms and Conditions” then click ‘Proceed’ to go to the next step.
- 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.
- 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 check generation), click here.
If you want to check the status of your loan application, here are different ways to do it.
Once the loan proceeds are ready, member-borrowers can finally claim it through their preferred mode of claiming. For more information, read this.
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.