The COVID-19 pandemic has certainly affected everyone’s finances. You may be one of the many Filipinos who lost their jobs in the last two years, or who are looking to start a small business to have another source of income. Good thing that applying for an SSS salary loan is a lot easier now.
Thanks to a more developed online system, active members can enjoy a more 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 soon, this article will tell you everything you need to know.
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Who Can Apply for SSS Salary Loan?
SSS members who have at least 36 months total contributions and six months of contributions in the last 12 months can apply. The salary loan amount is equivalent to one month’s worth of salary.
You can also apply for a two-month salary loan. But you should have at least 72 months of posted contributions and six months of contributions in the last 12 months.
Not sure how many months of contributions you have to loan from SSS? You can find all your SSS 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.
If you‘re employed, your employer must have up-to-date loan remittances and monthly contributions. You must also have up-to-date payments of other loans acquired. This includes housing loans from the Unified Home Lending Program (UHLP) of the government.
Furthermore, you should not have received the SSS final benefits as well, like total permanent disability, retirement, and death benefits.
Read more: SSS Pension Computation: How Much Will You Receive When You Retire?
Requirements for SSS Loan
SSS Loan Requirements for Employees
Curious to know how to get a loan from the SSS online? Employed SSS members need to prepare the following:
- An SSS digitized ID or E-6
- Two valid photo IDs[1]
- An SSS online membership
SSS Loan Requirements for OFWs
OFW-members can apply for a salary loan at SSS Foreign Representative Offices within their current area. If unavailable, OFWs can designate a representative to submit their application and documents in the Philippines.
Note that original copies of supporting documents must be provided on the application.
- Authorized representative’s SSS ID/UMID card or two valid photo IDs with signature
- Letter of authority signed by both the OFW-borrower and authorized representative
- OFW’s SSS ID/UMID card or two valid photo IDs with signature
SSS Salary Loan Online Application
If you don’t want to visit an SSS branch, you can apply for a salary loan online via the My.SSS portal.[2] Check out this SSS online registration guide if you haven’t registered yet. It will teach you the steps to register for an account and how to fill out the SSS loan form, just to name a few.
How to Apply for SSS Loan Online
Once you have successfully registered, follow these simple steps.
- Log in to your My.SSS account and click E-Services.
- Click Apply For Salary Loan. Your loanable amount will be automatically displayed (Note: You can choose to borrow a lower amount).
- Once approved, you’ll receive the loan proceeds through PESONet banks, E-Wallet, Remittance Transfer Companies (RTC) or Cash Payout Outlets (CPO) accredited by the SSS for the Disbursement Account Enrollment Module or DAEM, depending on which method you selected. To learn how to enroll your bank account, check out this Disbursement Account Enrollment Module tutorial on YouTube.
- Make sure to read the terms and conditions carefully. Tick the box for “I agree to the Terms of Service” before clicking Proceed.
- You’ll see the loan disclosure statement. Take time to read it by either downloading or printing it out.
- After viewing the statement, click Submit.
- After submitting, you’ll see a confirmation message. Copy the transaction number or refer to the email notification sent to your registered email address for future reference.
Proof of Account Ownership for Disbursement Account Enrollment Module (DAEM)
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.
For disbursements through bank accounts, you can upload any of the following:
- ATM card that shows the full account number, account holder’s name, and the issuing bank
- Bank certificate/statement issued after 2019
- Foreign remittance receipt
- Passbook
- Screenshot of the online/mobile banking account
- Validated deposit slip
For disbursements through e-wallets: Screenshot of the mobile app account
Note: For disbursements through UMID-ATMs, bank accounts transferred from Sickness and Maternity Benefits Payment Module (SMBPB) to DAEM, and DBP Cash Padala thru M Lhuillier, you don’t need to submit a proof of account ownership.
Read more:
- 3 Simple Ways to Check Your SSS Contributions Online
- SSS Online Employer Registration: A Guide for Companies and Employers
How Many Days is the SSS Salary Loan Release?
Once your SSS salary loan application is submitted, your employer has three working days to certify your application. You’ll be notified through email about your SSS loan application status.
How will you know if your SSS loan is approved, you ask? There will also be a text message to notify you if your loan has been approved.
What Does “SSS Loan Application Has Been Granted” Mean?
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.
Read more: SSS Disability Pension in the Philippines Explained
How to Pay for SSS Salary Loan
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:
| If the 10th digit of the the 13-digit ER/HR number ends in | Payment Deadline (following the applicable month) |
|---|---|
| 1 or 2 | 10th day of the month |
3 or 4 | 15th day of the month |
5 or 6 | 20th day of the month |
7 or 8 | 25th day of the month |
| 9 or 0 | Last day of the month |
| If the 10th (last) digit of the the SS number ends in | Payment Deadline (following the applicable month or quarter for SE/VM only), as the case may be |
|---|---|
| 1 or 2 | 10th day of the month |
3 or 4 | 15th day of the month |
5 or 6 | 20th day of the month |
7 or 8 | 25th day of the month |
| 9 or 0 | Last day of the month |
The interest rate on the loan is 10% per annum based on diminishing principal balance. This will continue to be charged on the outstanding balance until fully paid.
In cases where the loan defaults, the unpaid amount will be deducted from benefits claimed by the member.
- Self-employed and voluntary members will have the amount deducted from their short-term benefits (Sickness/Maternity/Partial Disability).
- In the case of death, total disability, or retirement under the Social Security Act, the amount, interest, and penalties will be deducted from the corresponding benefits.
Members with outstanding loans must also inform the agency via mail, email, or over-the-counter at the nearest SSS branch of any changes to address or employer. The notice should include the SSS number along with the member’s name and signature.
Related article: 10 Helpful SSS Benefits You Might Not Know Of
Where to Pay for Online SSS Salary Loan
If you want to know how to pay your SSS salary loan online, it’s just like paying for your SSS contributions. You’ll need the Payment Reference Number (PRN) for your loan so that your payments will be instantly transmitted and validated.
For individual members, you’ll receive your SSS loan PRN by email, SMS, or through your My.SSS account. You can also make a PRN loan inquiry over the counter at SSS branches or through e-Service Centers. Once you receive your PRN, you can pay through the different accredited payment channels listed below.
Your SSS loan payments using PRN will be accepted at the following:
- SSS branches with Automated Tellering Systems
- RTPL-compliant SSS Collecting Partners (banks and non-banks)
- Local banks(for employers through Bancnet’s e-Gov facility
- Asia United Bank
- Bank of Commerce
- China Bank Corporation
- CTBC Bank
- EastWest Bank
- Metrobank
- MUFG Bank
- PBCOM
- PNB
- Philippine Trust Company
- Philippine Veterans Bank
- Robinsons Bank
- Standard Chartered Bank
- United Coconut Planters Bank
- You can also make short-term loan payments at the following:
- Security Bank
- UnionBank
- RCBC
- BayadCenter
- CashPinas
- SM Mart Inc.
Final Thoughts
Providing a salary loan program is one of the ways SSS gives back to members who contribute regularly. In today’s COVID-19 reality, consider using your SSS salary loan to provide for your family’s immediate needs.
You can also use it to grow your savings again, fund a small business, or pay your bills. It’s easier to apply for one now, anyway. The SSS loan processing time is a lot shorter, too.
Not sure if a salary loan in SSS is right for you? Looking for other loans with an easier application process and faster approval time? Check out these options and apply through Moneymax!
| Personal Loan Providers | Minimum Loan Amount | Minimum Annual Income | Approval Time |
|---|---|---|---|
| Citibank Personal Loan (This product is sold by Union Bank of the Philippines, using certain trademarks temporarily under license from Citigroup Inc. and related group entities.)  | ₱100,000 | ₱250,000 | Fast approval time in as fast as 24 hours |
Maybank Personal Loan | ₱50,000 | ₱300,000 | Apply for a loan online in just a few clicks |
| RCBC Bank Personal Loan | ₱50,000 | ₱360,000 | Get approved within 5 to 7 banking days |
PBCOM Personal Loan | ₱40,000 | ₱420,000 | Get approved within 3 banking days |
| SB Finance Personal Loan | ₱30,000 | ₱360,000 | Get approved within five banking days |
| CIMB Bank Personal Loan | ₱30,000 | ₱180,000 | Apply within 10 minutes and get approved in 24 hours |
| HSBC Personal Loan | ₱30,000 | ₱168,000 | Get approved within 5 to 7 banking days |
| EastWest Bank Personal Loan | ₱25,000 | ₱180,000 | Get approved within five to seven banking days |
| BPI Personal Loan | ₱20,000 | ₱300,000 | Get approved within 5-7 banking days |
| CTBC Bank Personal Loan | ₱10,000 | ₱180,000 | Get approved within 3 to 5 banking days |
| EasyRFC Multi-Purpose Loan | ₱10,000 | ₱120,000 | Fast approval time in as fast as 24 hours |
Sources:
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