Published: March 25, 2020 | Updated: April 1, 2020 | Posted by: Ricky Publico | Government Services
The enhanced quarantine currently placed over the entire Luzon area will certainly affect everyone’s finances for a while. Good thing applying for an SSS salary loan got a lot easier than it used to be. Thanks to a more developed online system, SSS members can easily apply for loans from the comfort of their homes.
SSS members can apply for an SSS salary loan equivalent to one month’s worth of salary. You just need to make at least 36 months total contributions and 6 months of contributions in the last twelve months.
You can also apply for a two-month salary loan, but you should have at least 72 months of posted contributions and 6 months of contributions in the last twelve months.
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As far as document requirements are needed, employed SSS members need to prepare the following:
OFW members can apply for salary loans at SSS Foreign Representative Offices within their current area. If unavailable, the OFW member 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.
Because of the Luzon lockdown, you can’t apply for a loan at SSS branches. You can instead apply for an SSS salary loan online via the My.SSS portal. If you haven’t registered to the online SSS system, check out this SSS online registration guide. Once registered, follow these simple steps.
Note that once your SSS salary loan application is submitted, your employer is given three (3) working days to certify your application. You will be notified through email about your SSS salary loan application’s status. You will also receive a text message after your loan has been approved. Otherwise, it will expire and you will need to repeat the process.
Salary loans are payable within 24 monthly installments. The monthly amortization begins on the second month following the date of the loan, due on or before the SSS salary loan payment deadline detailed below:
Interest rates on the loan are 10% per annum based on diminishing principal balance, and 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.
Members with outstanding loans must also inform the agency via mail/email/over-the-counter at the nearest SSS branch of any changes to address or employer. The notice should include the SS number along with the member’s name and signature.
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 once the enhanced quarantine is over. Start growing your savings again, fund a small business, or pay the bills you left unattended.
And in addition to applying for financial aid, you should also prioritize proper hygiene. Remember to wash your hands for at least 20 seconds to remove all traces of viruses. Practice social distancing, improve your immune system, eat healthy food items, and drink water religiously. For more COVID-19 tips, check out these articles below.
Read more COVID-19 Tips
Ricky is the zaniest Senior Content Writer at Moneymax, with over five years of writing experience in the digital marketing industry. He is a huge fan of pro wrestling, smartphones, and binge-watching. Follow Ricky on LinkedIn.