Definition

It is a privilege loan granted to eligible member-borrowers intended to meet their short-term credit needs. 

Qualifying Conditions

1. All employed and currently contributing self-employed or voluntary members applying for salary loan must meet the following eligibility requirements:

1.1  For a one-month loan, the member-borrower must have thirty-six (36) posted monthly contributions, six (6) of which should be within the last twelve (12) months prior to the month of filing of application.

1.2  For a two-month loan, the member-borrower must have seventy-two (72) posted monthly contributions, six (6) of which should be within the last twelve (12) months prior to the month of filing of application.

2. The employer of the employed member-borrower must be updated in the payment of contributions and loan remittances.

3. The member-borrower must:

3.1  have not been granted any final benefit (e.g., total permanent disability, retirement, and/or death benefits)

3.2  be under sixty-five (65) years of age at the time of application for loan

3.3  have not been disqualified due to fraud committed against the SSS.

Loan Details

Loanable Amount

1. A one-month salary loan is equivalent to the average of the member-borrower’s twelve (12) latest posted Monthly Salary Credits (MSCs), rounded to the next higher MSC, or amount applied for, whichever is lower.
2. A two-month salary loan is equivalent to twice the average of the member-borrower’s twelve (12) latest posted MSCs, rounded to the next higher MSC, or amount applied for, whichever is lower.
3. The net amount of the loan shall be the approved loan amount less service fee, pro-rated interest, and outstanding balance of previous short-term member loans, if any.

Interest Rate, Penalty and Service Fee

1. The loan shall be charged an interest rate of 10% per annum until fully paid, computed on a diminishing principal balance, and shall be amortized over a period of twenty-four (24) months.
2. Pro-rated interest from date of loan granting up to the end of the month prior to first amortization month shall be deducted in advance from the loan proceeds.
3. Any excess in the amortization payment shall be applied to the outstanding principal balance.
4. Loan amortization not remitted on due date shall bear a penalty of 1% per month. A delay of a fraction of a month shall be charged a full month penalty.
5. Aggregate unpaid obligation equivalent to more than six (6) monthly amortizations shall result to loan default. The full balance of a defaulted loan shall become due and demandable. A defaulted account is subject to 10% interest per annum charged on the outstanding principal balance and 1% penalty per month on unpaid principal and interest until fully paid.
6. A service fee of 1% of the loan amount shall be charged and deducted from the proceeds of the loan.

Repayment Term and Schedule of Payment

1. The loan shall be payable within two (2) years in twenty-four (24) equal monthly amortizations.

2. The loan amortization shall start on 2nd month following the date of the approval of the loan.

3. Payment deadline shall be on or before the last day of the month following the applicable month. Please see sample illustration below:

4. In case the payment deadline falls on a Saturday, Sunday, or Holiday, payment may be made on the next working day.

5. Payment shall be made at any SSS branch offices with payment facility, SSS-accredited bank, or SSS-authorized payment centers.

Loan Renewal

1. Renewal of loan shall be allowed after payment of at least 50% of the original principal amount and when at least twelve (12) months has lapsed.
2. Proceeds of renewed loan may be any amount greater than or equal to zero, provided that the outstanding balance on the previous loan has been deducted.

Consequence of non-payment

In case the member-borrower fails to immediately pay the outstanding balance, the arrearages/unpaid loan, as well as the interest and penalty thereon, shall be deducted from the benefits being claimed by the member, as follows:

1. For employed member – final benefits (total disability/retirement/death).
2. For self-employed/voluntary member – short term benefits (sickness/maternity/partial disability) or final benefits (total disability/retirement/death).

Other Conditions of the Loan

Any overpayment on a previous loan shall be subject to validation of SSS and if valid, shall be applied to the active loan, if any.  If there is no active loan, it shall be refunded to the member-borrower upon his/her request.

Loan Proceeds

The loan proceeds shall be released through any of the following:

1. Through Development Bank of the Philippines (DBP) Philippine Electronic Fund Transfer System and Operations Network (PESONet) Accredited/Participating Banks:

Active single account in any PESONet accredited/participating banks in the name of the member-borrower shall be enrolled in DAEM.

2. Through Unified Multi-Purpose Identification (UMID) – Automated Teller Machine (ATM) Card:

If with activated UMID-ATM, the loan proceeds shall automatically be credited to member-borrower’s account.

3. Through Union Bank of the Philippines (UBP) Quick Card:

Member-borrowers may opt to avail the card at selected SSS Branches with UBP Kiosk. The corresponding account number of UBP Quick Card must be enrolled in DAEM by accessing the member’s My.SSS account.

Responsibilities of Employer (for employed members)

1. The employer shall be responsible for the collection through payroll deduction and remittance to the SSS of the amortization due on the member-borrower’s salary loan.
2. In case the employed member-borrower is separated voluntarily (e.g., retirement or resignation) or involuntarily (e.g., termination of employment or cessation of operations of the company) from the company, the employer shall deduct the total balance of the loan from any benefit/s due the employee and shall remit the same in full to SSS.
3. The employer shall report to the SSS the effective date of separation from the company and the unpaid loan balance of the employed  member-borrower, through the collection list, if the benefit/s of the employed member-borrower is/are insufficient to fully repay his/her loan.
4. The employer shall require a new employee to secure from the SSS an updated statement of his/her account, deduct the amortization due from his/her salary and remit the payment to SSS.

Responsibilities of Member-Borrower

1. The member-borrower shall notify the Member Services Section of the nearest SSS Branch office of any change in his/her contact information or by logging in to his/her My. SSS account through the SSS website or mobile application.
2. A member-borrower who transfer employment shall secure from the SSS and submit to his/her new employer an updated statement of account of any outstanding loan balance with SSS and allow his/her employer to deduct from his/her salary the corresponding amortization due, including any interest or penalty for late remittance.

How to Apply

A member- borrower may file/submit the salary loan application online thru the SSS Website (My.SSS facility), or thru the SSS mobile application.

Member-borrower shall enroll/nominate his/her valid bank account in the Disbursement Account Enrollment Module (DAEM) and shall be used as mode of disbursement of salary loan application by accessing the member’s My.SSS account.

See How to Enroll an Account in the Disbursement Account Enrollment Module (DAEM)