A Complete Guide To Getting An SSS Salary Loan

by Carlo Miguel Castañeda, on category "Government Services,In-Depth Guides,Personal Finance"

July 29, 2017


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Applying for an SSS salary loan these days is much easier than it used to be. Thanks to a more developed online system, the Philippine Social Security System can apply for loans from the comfort of their homes.
People who are members of the SSS can apply for a cash loan equivalent to one month’s or two months’ worth of their salary after making at least 36 months total contributions, and 6 months of contributions in the last twelve months. In the case of a two-month salary loan, there needs to be at least 72 months of posted contributions and 6 months of contributions in the last twelve months.
The loan isn’t limited to just local members, and is also open to SSS members currently stationed abroad, and here’s your complete guide to the process.
The requirements
As far as document requirements are needed, locally employed members will need to have the following ready:
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  • An SSS Digitized ID or E-6
  • 2 valid photo IDs (see here for a complete list of valid IDs)

You’ll also need to register online via the SSS official website, where you can use the E-services tab to apply for the loan and receive a confirmation e-mail, along with a transaction number for the request.
Self-employed or voluntary payors will need to visit the nearest SSS branch to get a member loan application form, along with the following documents:

  • Accomplished SSS Form ISL-101
  • SSS Digitized ID or E-6
  • 2 valid photo IDs with signature

OFW members can apply for salary loans at SSS Foreign Representative Offices – if available in their current area. If unavailable, the OFW member can designate a representative to submit their application and documents to their nearest SSS branch.

  • Accomplished member loan application form
  • Authorized Representative’s SSS card or two valid photo IDs with signature
  • A Letter of Authority signed by both the OFW borrower and authorized representative
  • OFW’s SS card or two valid photo IDs with signature

Note that original copies of supporting documents must be provided on the application.
Quick Tip: Employed members should submit an updated Specimen Signature Card (SS Form L-501) via their employer annually to avoid application delays.
Disbursement
Loan applications – whether via the SSS website or processed at a branch – take two to three weeks to approve from the date of application, providing that all necessary documents have been submitted.
For employed members, the check is released to their employers. OFW members and self-employed members will be notified when their check is ready by the SSS branch they applied from.
Checks are issued by the Philippine National Bank (PNB) and can be encashed at any PNB branch. Note that you’ll need to bring a two valid photo IDs with signatures for verification.
There’s also a 1% service fee that will be charged to your total loan proceeds.
Payments, interest, and penalties
Salary loans are meant to be payable within 24 monthly installments. The monthly amortization begins on the second month following the date of the loan, due on or before the payment deadline detailed below:
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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.

  • Self-employed and voluntary members will have the amount deducted from 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/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.
Final thoughts
Getting a salary loan is one way that the agency gives back to members that contribute regularly. The amount you borrow doesn’t need to be spent, either. Consider using the amount as a means to start growing your savings, or to fund a small business.
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