Check Here the SSS Housing Loan Amount, Interest Rate Before Applying for Loan
SSS HOUSING LOAN AMOUNT, INTEREST RATE – Here is a guide on the details under the loan offer of the Social Security System.
Are you planning to get your house repaired or renovated soon? If you are a member of the Social Security System, you do not need to wait until you have saved enough money so you can finally start your way to your goal.
The SSS offers a Housing Loan that was specifically designed to finance house repairs and home improvements. Here is a guide on the important details that member-borrowers must know:
SSS Housing Loan Amount. With regards to the loanable amount under the Social Security System loan offer, according to the state entity, the maximum borrowing amount allowed is Php 1 million. It considers some factors with regards to the loanable amount such as the following:
- appraised value of collateral of at least 70% but not to exceed 90%
- actual need of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS
- borrower’s capacity to pay
It is important to know that that the SSS implements processing fees. According to the social insurance giant, “a processing fee equivalent to ½ of 1% of loan amount or Php 500.00 whichever is higher but not to exceed Php 3,000.00” will be deducted from the first loan release.
Furthermore, the SSS also charges an inspection fee of Php 500.00. The rate is applicable to areas both within and outside Metro Manila.
SSS Housing Loan Interest Rate. Aside from checking on the SSS Housing Loan amount allowed for borrowing, it is also important to know the interest rate set by the social insurance giant under the offer. The interest rate is at 9% per annum.
According to the Social Security System, loan accounts with payment terms that are not more than 15 years will bear a fixed interest rate. The loan accounts with loan terms that are beyond 15 years will bear a fixed interest rate only during the first 15 years of the loan term. Thus, the loan interest rate is subject to the re-pricing every five (5) years.
SSS Loan Term. The loan is payable in multiple of five (5) for up to a maximum of 20 years except in the case of overseas Filipino worker (OFW) members of the SSS. Thus, non-OFW members may choose to repay the loan in 5, 10, 15, or 20 years. OFW members may repay the SSS Housing Loan amount borrowed for up to 15 years.
The Social Security System has set considerations with regards to the loan term. According to the SSS, here are the factors considered:
- principal borrower’s age shall not exceed sixty-five (65) years old at the time of loan maturity
- loan term shall not exceed the economic life of the house after repairs and/or improvements are introduced as determined by the SSS appraiser
In paying for the loan, the issuance of Post-Dated Checks (PDCs) is required. The member-borrower must submit a set of 12-month PDCs that will represent the 12 monthly amortizations for the loan repayment for the first year. It must be replenished yearly until the loan is fully-paid.
The loan offer is open for locally-employed members, self-employed members, as well as OFW members of the Social Security System. The requirements vary and you may refer below:
- SSS Housing Loan Requirements 2025 for OFW Members