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Required Qualifications for SSS Salary Loan

You will actually going to lose your time applying for an SSS salary loan only to find out that you are not qualified. Thus, before applying for SSS salary loan, the most important first step that you need to do is to know if you have the qualifications which are covered on this post.

If you have successfully meet all the necessary qualifications then you will surely be able to benefit from your 1 month or 2 months cash loan.

Applicants for SSS salary loan are members who are employed, self-employed, and voluntary members. They can be currently paying for their contributions. But, they must have at least a contribution of 6 posted months for the last 12 months period.


One-Month Salary Loan

A member who wants to borrow a loan for one month must have at least a total of 36 posted monthly contributions before he or she can file for application. Other than that, the six posted months of the member’s contributions must fall within the last twelve months.

Two-Month Salary Loan

In order for a member to borrow a two month salary loan, he or she must have at least a total of 72 posted monthly contributions before being allowed to file for application. And just like the one-month salary loan above, the borrower must have paid six monthly posted contributions within the last twelve months.

Other Requirements:

1. An employed SSS member-borrower will have their employer get updated about his or her contributions and load remittances.
2. As a member-borrower, he or she must be updated at the current payment of other member loans. These includes educational, stock investment, MADE and housing loans (under UHLP or direct from SSS).
3. Applicant must be under the age of 65 years old.
4. He or she must not have been granted with final benefit. This means that the member-borrower must not have existing benefit due to permanent disability, retirement, and death.
5. A member-borrower must not have bad records against SSS such as committing fraud.

Amount that a Member-Borrower Can Loan

Member-borrower who opted for one-month salary loan will receive a loan that is equivalent to his or her average posted 12 Monthly Salary Credits (MSCs). Or, the amount that he or she would like to loan. Between the two, the lower amount is what’s going to be granted.

Member-borrower who opted for two-month salary loan can ask for an amount that is twice the average of his or her latest posted 12 MSCs. This amount is rounded to the next higher monthly salary credit. Or, the amount that he or she applied for. Whichever is the lower amount is what’s going to be granted.

When it comes to the net amount of the loan, this is the difference between the approved loan amounts and the addition of all outstanding balance of members with short-term loans.

Paying the Borrowed Loan

The loan must be paid by the member-borrower within a period of two years in the form of 24 monthly installments. Monthly amortization will start by the second month period of the loan date but the deadline must be on or before the scheduled payment.

SSS payment schedule and deadline for monthly schedule is covered on another separate post.

Note: When paying your loan, make sure that you are paying it to an authorized SSS branch with tellering facility. Other alternative payment options can be made through any SSS-accredited banks as well as many other SSS-authorized payment centers.

Loan Interest and Penalty

The loan that you borrowed will incur an interest rate of 10 percent per annum from your diminishing principal balance. And, you must be able to amortize it for a period of 24 months. This 10 percent interests will continuously being charged on your outstanding principal balance until full payment is achieved.

When it happens that there is an excess amount on your amortization payment, the amount will be added into your outstanding principal balance.

Penalty will only occur when you failed to remit your loan on its scheduled due date period. The penalty is that you will be charged with 1 percent for each month until you pay the required payment of your loan.

Service Fee and Loan Renewal

Service fee is an amount which is charged and deducted from the proceeds of the loan that you borrowed. The fee is 1 percent which goes to the SSS employees.

As for the loan renewal, you will only be allowed to renew your loan if you meet the requirement of being able to pay at least 50 percent of your original principal amount. And also, at least 50 percent of this term must have lapsed.

The proceeds of renewal loan with regards to the amount must be greater than or equal to zero. And, the previous outstanding balance of your loan has already been deducted.

Moreover, if you are not sure about your status if you can be qualified for an SSS Salary loan or not then it is best for you to contact SSS hotline or visit their nearest branch.



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