Guide on the SSS Salary Loan Offer for Members
SSS SALARY LOAN – The Social Security System members may apply for the multi-purpose cash loan offer, the Salary Loan.
One of the most popular loan offers of the Social Security System is the Salary Loan. It is a loan option that members may turn to in the pursuit of addressing multiple short-term financial needs. You may apply for it to finance several purposes including the following:
- minor business expansion
- payment of utility bills
- travel
- funding a project
- payment of educational fees
Through the SSS Salary Loan offer, the Social Security System wants to make sure that qualified members have something to turn to in times of cash needs. Who are qualified to apply for the offer? Here is the eligibility criteria set by the bank:
- currently employed, self-employed, or voluntary member of the Social Security System
- must have posted at least 36 monthly contributions in the SSS account
- employer must be updated in the payment of the SSS contributions
- has not received any final benefit from the SSS
- 65 years old and below at the time of the loan application
- has not been disqualified due to fraud committed against the SSS
How much is loanable under the SSS Salary Loan offer? Member-borrowers who have posted at least 36 monthly contributions may borrow an equivalent of their one-month basic monthly salary.
With regards to the loanable amount for the SSS members who have posted at least 72 monthly contributions, they may borrow up to twice the average of the member-borrower’s latest posted 12 MSCs, rounded to the next higher monthly salary credit, or amount applied for, whichever is lower”.
The interest rate under the Salary Loan offer of the state-run social insurance giant is at 10% per annum. It is implemented based on a diminishing principal balance scheme and the maximum loan term is 24 months.
In applying for the loan offer, there are documentary requirements for SSS Salary Loan application that you need to prepare and submit to the Social Security System. After filing your application, wait for an update from the state entity.
