Guide on SSS Salary Loan Offer for Qualified Members
SSS SALARY LOAN – Here are the features of the Salary Loan offer of the Social Security System and the requirements.
Are you one of the members of the Social Security System? More popularly called SSS, the state-run social insurance giant has several offers for its members. It has the benefit offers that attend to different situations as well as loans that provide financial solutions during the challenging times.
One of the loan offers of the Social Security System is the SSS Salary Loan which is open for both employed ands self-employed members of the state entity. Even voluntary members of the social insurance giant may apply for the loan offer.
The Salary Loan offer was designed to help the members meet their short-term needs. It is open to finance multiple purposes including funding a project, financing a minor business expansion, travel, payment of utility bills, etc
Who are qualified to apply for the SSS Salary Loan offer? The Social Security System has set a few qualifications in applying for the loan offer. Here are the eligibility requirements that a member must meet to qualify for the loan offer:
- must have posted at least 36 monthly contributions in the SSS account
- 65 years old and below at the time of the loan application
- employer must be updated in the payment of the SSS contributions
- has not received any final benefit from the SSS
- has not been disqualified due to fraud committed against the SSS
With regards to the loanable amounts under the SSS Salary Loan offer, it is dependent on the number of the total contributions posted by the member-borrower.
- SSS members who have posted at least 36 monthly contributions may borrow an equivalent of their one-month basic monthly salary.
- SSS members who have posted at least 72 monthly contributions 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.
How much is the interest rate under the Salary Loan offer? The state-run social insurance giant set the interest rate at 10% per annum. The interest is implemented on a diminishing principal balance until the loan is fully-paid. The loan is payable for up to 24 monthly installments.
