SSS Salary Loan: Your Guide to Fast Cash

The Social Security System (SSS) offers a salary loan program to its members, providing a valuable financial resource in times of need. This guide will walk you through the essentials of the SSS Salary Loan, from eligibility to the application process, all based on the latest SSS circular.

Who Can Apply for an SSS Salary Loan?

To be eligible for the SSS Salary Loan, a member must meet several conditions. You can apply for a one-month or two-month loan depending on your total contributions.

• For a one-month loan: You need at least 36 posted monthly contributions, with 6 of them made within the last 12 months before your application.

• For a two-month loan: You need at least 72 posted monthly contributions, with 6 of them made within the last 12 months before your application.

Additionally, you must be under 65 years of age at the time of application and have no past-due loans with the SSS. Your employer must also be up-to-date with their contribution and loan remittance payments.

How Much Can You Borrow?

The loan amount is based on your average monthly salary credit (MSC) over the last 12 months.

• One-month loan: Equal to the average of your last 12 MSCs.

• Two-month loan: Twice the average of your last 12 MSCs.

Interest Rates and Fees

The interest rate for new loans is 8% per year. However, this can increase to 10% for loan renewals if you have availed of penalty condonation in the past five years. A 1% service fee is deducted from the loan proceeds. Late payments will incur a penalty of 1% per month.

How to Repay Your Loan

The loan is payable in 24 equal monthly amortizations. Payments start on the second month after the loan is approved. You can pay at any SSS branch with a tellering facility or through an SSS-accredited collecting agent.

How to Apply for an SSS Salary Loan Online

Applying for an SSS Salary loan is easy and convenient. You can file your application online through the SSS website or the My.SSS mobile app. Make sure your contact information and disbursement account are updated in the My.SSS portal.

Reference: CI2025-0004