Guide on the Service Fee Deduction Under the SSS Member Salary Loan
SSS MEMBER SALARY LOAN – Here is a guide on how much is deducted for the service fee in applying for a salary loan to the Social Security System.
The Social Security System (SSS), a state-run insurance institution in the Philippines, offers a lot of benefits and privileges to its members. Most of its members are employees of the private companies and self-employed individuals.
Among the offers of the social insurance institution to its members is the SSS Salary Loan. It aims to assist the members in their short-term needs.
Under the SSS Member Salary Loan, a member-borrower can loan for up to a two-month equivalent of his or her monthly salary. The loanable amount depends on the total monthly contribution posted by the member.
Based on the official website of the Social Security System, an SSS member who has posted at least 36 total monthly contributions is eligible for a loan that is equivalent to his or her one-month average monthly wage.
For a member to be eligible for a two-month equivalent of his or her average monthly salary, the member-borrower should have posted at least 72 monthly contributions.
With regards to the deduction from the loan proceeds, a 1% service fee is charged from the SSS Member Salary Loan. It is apart from the interest that will be charged on annual basis.
According to SSS, the interest rate charged on salary loans is at “10% per annum based on diminishing principal balance. The loan can be payable for up to two(2) years or 24 monthly installments.
Are you interested in applying for the said SSS loan offer? Visit – SSS SALARY LOAN INTEREST: Guide on the Interest Rate For the SSS Salary Loan.
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