Need Cash? You Might Want to Try SSS Salary Loan

Who do you run to when you need cash? Family and friends will always be your first options because:

  1. they can be found easily, which means borrowing money is easy as well;
  2. there is no interest rate imposed; and
  3. you can pay when able (although this shouldn’t always be the case).

Of course, you need to understand that family and friends can’t come to your rescue when you need help. As a result, you turn to banks for personal loan.

Did you know that government agencies like SSS also offers this type of facility to its members? It is called Salary Loan and the main purpose of this cash loan facility is to offer short-term credit needs to ALL its members.

Here’s what you should know about SSS Salary Loan: 

Loan Features 

  • Loan Term: One or two months
  • Loan Amount: For one-month loan, amount is the borrower’s average latest posted 12 Monthly Salary Credit (MSC) OR amount applied for, whichever is lower. For two-month loan, the amount is twice the average of the latest posted 12 MSC, rounded to the next higher monthly salary credit OR amount applied for, whichever is lower.
  • Interest Rate: 10 percent per annum
  • Loan Repayment: Payable within two years in 24 equal monthly installments at any SSS branch with tellering facility or SSS-accredited bank or payment center. Take note that the monthly amortization will start on the second month following the date of the loan.
  • Penalty Rate: One percent per month
  • One percent service fee, which will be deducted on the proceeds of the loan.
  • Loan renewal is allowed as long as at least 50 percent of the principal amount has been paid and at least 50 percent of the loan term has lapsed.

Who can apply? 

  • SSS members who are currently employed, contributing self-employed, or voluntary member.
  • S/he must be under sixty-five (65) years of age at the time of application.
  • SSS members with continuous and updated monthly contributions. Member-borrower must also post at least 36 and 72 monthly contributions for one-month and two-month loan, respectively, six of which must be made within the last 12 months prior to the application.
  • SSS member-borrower who has not been granted final benefit like retirement, total permanent disability, or death benefits.
  • S/he must not be disqualified due to fraud committed against SSS.

How to Apply for SSS Salary Loan:

  1. Fill out the application form.
  2. Present your SSS digitized ID or E-6 (Acknowledgement Stub) together with two valid IDs, preferably with photo. For a complete list of acceptable ID, you can check out this post.
  3. Submit the application form and IDs at the SSS branch nearest your office or place of residence.
  4. In case you have an online account with SSS, you can also submit your application form by logging in at your My.SSS account. If you are employed and you opted for online application, take note that your application form will be directed to your employer’s My.SSS account, which means your employer must also be registered online with SSS.

For OFW Applicants

You should submit the following at the SSS branch nearest your place of residence:

  • Duly accomplished application form of the borrower
  • Two (2) valid ID with photo OR SSS card of the OFW’s authorized representative AND OFW member-borrower
  • Letter of Authority (LOA) signed by both OFW member-borrower and authorized representative

Take note that documents issued overseas must be duly authenticated or certified by the Philippine Embassy or Consulate.

If applicable, you can also submit your loan application at SSS Foreign Representatives stationed in Hong Kong, Singapore, Malaysia, Taiwan, Brunei, Qatar, UAE, Saudi Arabia, Bahrain, Italy, and UK.

If filed by Employer or Company Representative

  • Duly accomplished application form of the borrower
  • Member-borrower’s SS card OR SS Form E-6 acknowledgement stub and two valid IDs with photo and signature
  • Authorized Company Representative (ACR) card issued by SSS
  • Letter of Authority from employer and two valid IDs with photo and signature
  • Updated Specimen Signature Card (SS Form L-501)

Sounds tempting, don’t you think? Plus, this is a good way to take advantage of your membership as well.


2 thoughts on “Need Cash? You Might Want to Try SSS Salary Loan

    1. Hi Noralyn! Please check the post. We already enumerated the steps on how to apply for SSS Salary Loan. Thanks 🙂

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