Guide on SSS Cash Loan Interest Rate 2024 & the Service Fee Deducted from Loan Proceeds
SSS CASH LOAN INTEREST RATE is implemented on a diminishing balance and members must know that there is a service fee under the loan offer.
Are you interested to apply for the multi-purpose cash loan offer of the Social Security System or SSS? It is ready to help you in several purposes which may include the following:
- making a personal purchase
- minor business expansion
- traveling
- hosting an event
- getting the car repaired
- payment of other bills
- school fees
The SSS loan offer is open for both employed and self-employed individuals as well as overseas Filipino workers (OFWs) who wish to apply for the offer. Under it, up to twice (2) of the monthly salary of a qualified member may be borrowed depending on the total contributions posted by the member-borrower.
With regards to the SSS cash loan interest rate, it is set at 10% per annum. The loan is payable within two (2) years and the first monthly amortization will begin on the 2nd month following the date of the loan.
The SSS cash loan interest rate is implemented on a diminishing principal balance. The interest will be implemented until the end of the loan term.
With regards to the service fee, the Social Security System charges a processing fee which is equivalent to 1% of the loan amount. It will be deducted from the loan proceeds. In the case of the salaried individuals, the employer shall be responsible in collecting and remitting the monthly amortization of the employee who availed the cash loan.
In case of voluntary separation of an employed member from his/her employment, the employer must deduct the total balance of the loan from the remaining benefits of the employee and remit it to the state-run social insurance giant.
The requirements in applying for the SSS Salary Loan vary depending on who will apply for the loan offer: