If you’re strapped for cash and you need a little extra to make ends meet, it’s always advisable to use your SSS Salary Loan.
SSS Salary Loan is one of the most common benefits that members take advantage of because of the relatively low interest rate and the length of time they allow you to pay the loan back.
A salary loan refers to a borrowed sum of money from an employer or a government institution like SSS or PAG-IBIG to which you have contributed money on a monthly basis.
In this post, we’ll be talking more about how to apply for SSS Salary Loan.
Qualifications for the SSS Salary Loan:
- You should be employed, self-employed, or a voluntary member of the Social Security System with an active status in terms of contributions.
- For a one-month salary loan, the member borrowing from SSS must have thirty-six (36) posted monthly contributions before the month of filing for the loan, and for a borrower looking to loan a two-month salary loan, a total of seventy-two contributions must have been filed at least a month prior to the date of loan application.
- Your employer should be updated in the payment of contributions.
- You are not eligible if you have been granted final benefits (e.g. retirement, total permanent disability, or death)
- You should have a clean slate, without disqualifications due to fraud committed against SSS.
- You should have six (6) monthly contributions for the past twelve (12) months prior to the month of setting up your loan.
- You must be under sixty-five (65) years of age.
The amount of your loan depends on your contributions and the length of time you have been doing payments to SSS.
For a salary loan that’s worth one month of wages, the average amount derived from the total of your contributions within the latest 12 month period will equate to the amount of your loan. You can also request for a lower amount.
However, if you want a two-month salary loan, the amount you get is equivalent to the average of your latest posted amount applied for, times two.
The overall process takes two to three weeks total, from the time you apply for the loan up until to when you get your check.
We’ll do a step by step process on how you can apply for an SSS Salary Loan.
Filing Procedure (ONLINE)
- Go to sss.gov.ph and if you haven’t already registered, do that first. If, however, if you are already registered but you’ve forgotten your password, you can always can the SSS hotline for a password reset. You can make calls only during office hours. Protect your SSS username and password. These are crucial information that should not be shared to anyone else. There are cases of loans being made without the person whose name the loan is under isn’t aware of; for want of a better term, we can call it “Loan Theft”.
- Once logged in, click the Transaction tab on your account and then click the Salary Loan Application. You should have notified your employer about this beforehand for them to be able to certify you. The loan won’t push through without their approval or certification.
- Fill out all the necessary fields that the form is asking for. Check the terms of agreement. Once you’re finished, tap
- The window will load another page, which will offer you the tab View Loan Disclosure Statement. It will show you the amount of your loan, changes, deductions, the schedule of payments, and the interest fee. Below is table of the date of monthly payments.
Filing Procedure (OFFLINE)
Another option available to those who don’t have an access to a computer would be to file the loan at the nearest branch available to their place of residence or business.
Overseas Filipino Workers (OFW) may also file for a salary loan application at the Social Security Representative Offices in selected countries. If in case they are employed in a country without a representative office, they can always send in their supporting documents and authorization to relatives in the Philippines.
Take note that any document that is released or issued in a different country needs to be authenticated by the Philippine Embassy.
SSS Loan Application Requirements
We’ve listed the Application Requirements below, taken from the official SSS website, for different circumstances. For the member-borrower himself, for the authorized representative, and for the employer or company’s authorized representative.
- Member Loan Application Form
- SSS digitized ID or E-6 (acknowledgement stub) with any two valid IDs, one of which with recent photo.
- Unexpired Driver’s License
- Professional Regulation Commission (PRC) ID card
- Postal ID
- School or Company ID
- Tax Identification Number (TIN) card
- Seaman’s Book
- Membership card issued by private companies
- Overseas Worker Welfare Administration card
- Senior Citizens card
- Voter’s Identification card/Affidavit/Certificate of Registration
- ATM card
- with cardholder’s name; or
- with certification from bank, if without name
- Credit card
- Fisherman’s card issued by BFAR
- GSIS card/Member’s Record/Certificate of Membership
- Health or Medical card
- ID card issued by LGUs (e.g. Barangay/Municipal/City)
- ID card issued by professional association recognized by PRC
- Birth Certificate
- Baptismal Certificate
- Marriage Contract
- NBI Clearance
- Pag-IBIG Member’s Data Form
- Permit to carry firearms issued by the Firearms and Explosive Unit of PNP
- PHIC Member’s Data Record
- Police Clearance
- Seafarer’s Registration Certificate issued by POEA
- Temporary Driver’s License issued by LTO
- Transcript of Records
- Alien Certificate of Registration
- Bank Account Passbook
- Certificate from:
- Office of Southern/Northern Cultural Communities; or
- Office of Muslim Affairs
- Certificate of Licensure/Qualification Documents/Seafarer’s ID and Record Book from Maritime Industry
- Certificate of Naturalization from the Bureau of Immigration
- Life Insurance Policy
- Birth/Baptismal certificate of child/ren
II. Member-Borrower’s Authorized Representative
- Member-borrower’s duly accomplished Member Loan Application
- Authorized Representative’s SS card or any two valid IDs both with signature and at least one with photo
- Letter of Authority (LOA) signed by both the member-borrower and member-borrower’s authorized representative
- Member-borrower’s SS card or any two valid IDs both with signature and at least one with photo.
III. Employer or Company’s Authorized Representative
- Member-borrower’s duly accomplished Member Loan Application
- Authorized Company Representative (ACR) card issued by SSS
- Letter of Authority (LOA) from employer and any two (2) valid IDs both with signature and at least one with photo
- Member-borrower’s SS card or in its absence, Application for SS card (SS Form E-6) acknowledgment stub and any two valid Ids both with signature and at least one with photo.
FAQs about SSS Loan
Q: If I am a voluntary SSS contributor, may I still avail of the loan?
A: In cases of separation from employment or for overseas Filipino workers, you may still apply for a salary loan if you have complied with the above conditions stated on eligibility, which are contributions that amount to 36 or 72 months, depending on the amount of the loan you are applying for.
The same guidelines apply for voluntary members who have chosen to be self-employed or have ceased working under a company, one should have at least been able to contribute to SSS for at least 6 months within the 12 months prior to the filing for the salary loan. Contributions may be done in person at the nearest SSS branch to the person’s place of residence.
If you are eligible based on the guidelines stated, you may apply for the loan at the SSS branch nearest you or online. The processing time for the entire course is 5 to 10 working days, excluding the mailing of the check (this falls under the purview of Philpost). In total, it could take up to 2 to 3 weeks.
However, for employed members, checks are either sent via registered mail to the employer’s address or picked up by an authorized company representative.
If you want to verify your record, or if you would like further assistance, you may dial 920-6446 to 55 and 1-800-10-2255777 toll free to reach SSS Call Center Hotlines, available 24 hours, Mondays to Fridays.
Q: Does amortization and the interest of the loan depend on when I encash my check or on the date of receiving the check?
A: Your salary loan is bundled with an interest rate of 10% per annum, based on diminishing principal balance. It will be amortized over a period of 24 months. Moreover, the 10% interest will continue to be charged on the due principal balance until you have paid fully. However, the monthly amortization starts on the second month following the date of the loan.
In addition to this, loan amortization not remitted on the due date will be penalized with 1% of the amount per month until fully paid.
- SSS Salary Loan FAQs
- How to Check SSS Contribution Online 2019 using SSS Beta
- New SSS Contribution Table 2019
- Steps to SSS Online Registration