The government provides Filipinos with social welfare services. One of which is the Social Security System (SSS). The Social Security System is a government-run social insurance program for employees in the private, public, and informal sectors in the Philippines. As a regular contributor to the Social Security System (SSS), you are qualified to borrow money to fulfill your short-term credit needs.
The members of the Social Security System (SSS) should fulfill their monthly contribution to be eligible for future benefits, including pensions, death benefits, salary loans, and many more. The SSS Salary Loan is one of the services offered to SSS-paying members.
What is SSS Salary Loan
In a nutshell, the SSS salary loan is a cash loan granted to all SSS members. The total amount you can borrow will depend on the number of your contributions. This type of loan is offered to SSS members, regardless of employment status (e.g., employed, self-employed, or voluntary), to fund immediate expenses.
The most well-known and often used program of the Social Security System is the SSS salary loan because of its quick approval process and cheap interest rate. In 2019, the SSS salary loan worth 29.98 billion were released and given to 1.46 million members who applied for the loans from January to September 1.
Who are qualified to apply for an SSS Salary Loan?
In addition to being a paying SSS member, you must first fulfill certain requirements to be eligible for a salary loan, such as the ones listed below:
- At least 36 months of consistent and continuous contribution.
- Currently employed for at least a year (for employed individuals).
- Up-to-date monthly contributions.
- The member-borrower has not yet received the final benefit, which includes retirement, death, and total permanent disability.
- At the time of application, the member-borrower must be under sixty-five (65) years of age.
- The member-borrower has not and should not be involved in any fraud against the SSS.
How to know my expected loan amount?
- A one-month salary loan is equal to the average of the member borrowers’ latest posted 12 Monthly Salary Credits (MSCs), or the amount applied for, whichever is lower. Members who make the maximum monthly contribution can borrow up to the maximum loanable amount of Php 25,000 as the maximum Monthly Salary Credit is presently set at Php 25,000.
- A two-month salary loan is equal to the average of the member borrowers’ latest posted 12 MSCs multiplied by 2, rounded to the next higher monthly salary credit, or amount applied for, whichever is lower. Given that the maximum Monthly Salary Credit is presently set at Php 25,000, individuals of this group who consistently make the maximum contribution can borrow up to Php 50,000.
- The net amount of the loan shall be the difference between the approved loan amount and all outstanding balances of short-term member loans. Be informed that deductions will still be made from the total. These consist of the interest paid in advance plus a service charge equal to 1% of the loan sum. For instance, if you borrow Php 37,000, you would only get Php 36,315.75 after deducting the advance interest of Php 314.25 and the service charge of Php 370.
Again, tet the average of your most recent 12 Monthly Salary Credits to determine your loanable amount (MSCs). The maximum SSS salary loan you may take out is Php 18,000 for a one-month salary loan and Php 36,000 for a two-month salary loan, provided you are eligible for it. This is based on the assumption that your income is Php 18,000 and that you have consistently made contributions over the past 12 months.
What are the requirements needed for SSS Salary Loan Application?
As per SSS Circular 2019-0142, member-borrowers must now submit their applications online to be eligible for an SSS salary loan. This is good news. Now, you don’t have to line up in long queues.
- Member Loan Application Form
- SSS digitized ID or E-6 (acknowledgment stub) with two valid IDs, one of which has a photo recently taken.
If filed by Member-borrower’s Authorized Representative
- Member-borrower’s duly accomplished Member Loan Application
- Authorized Representative’s SS card or any two acceptable IDs, both with signatures and at least one of which must include a photo
- Letter of Authority (LOA) signed by both the member-borrower and member borrowers’ authorized representative
- Member-borrower’s SS card or any two valid IDs both with signature and at least one with photo
If filed by the Employer’s Authorized Representative
- Member-borrower’s duly accomplished Member Loan Application
- Authorized Company Representative (ACR) card issued by SSS
- Letter of Authority (LOA) from the employer and any two (2) valid IDs both with signature and at least one with a photo
- Member-borrower’s SS card or in its absence, application for SS card (SS Form E-6) acknowledgment stub and any two valid Ids both with signature and at least one with photo
- Original or certified true copies of the supporting documents should be presented during the filing of the claim
To complete the SSS salary loan application, you need to have reliable access to the Internet because you will be doing the whole process online. You also need to have a My.SSS account
Loan distribution by check is no longer available as of 2021. However, you can select from any of the following options for disbursement:
- Using the Disbursement Account Enrollment Module (DAEM) in your My.SSS account, you may enroll in any PESONet-accredited bank account that you have. As joint accounts won’t be approved, confirm that you are the only account holder.
- You can also receive the loan proceeds via e-wallet/RTC/CPO such as GCash, PayMaya, DCPay Philippines, or DBP Cash Padala through M Lhuillier.
- You may also receive your loan proceeds through Quick Card UBP issued by SSS. Note that UBP accounts connected to other governmental entities (such as the Pag-IBIG Loyalty Card) are not permitted. UBP Quick Cards only have 12 numbers and begin with “10.”
How do I apply for an SSS loan online?
You’re finally here! Let’s say that you tick all of the abovementioned requirements, here’s how you can apply for an SSS loan online.
- Go to the SSS website and log in to your My.SSS account. If you do not have an account, register first at My.SSS. To register, please visit this SSS Member Registration site.
- In your dashboard, go to the “e-services” tab. In the drop-down menu, choose “Apply for a Salary Loan.”
- It will show you a loan application form. Fill out the form and click the submit button.
- You will then see an estimate of the loan and its monthly payment.
- Provided you meet the eligibility requirements, your loan will be automatically approved. The funds will be credited to the disbursement method you choose on your loan application.
If you want to manually apply for the salary loan, you can do so at the branch that is closest to your place of home or business. However, the processing time will remain the same as for the online application.
OFWs can submit their loan applications through the Philippine embassy in their place of residency if they don’t have an online account. Foreign SSS Representative Offices are often located on embassy premises.
We really hope that the basic information about applying online for an SSS salary loan will be helpful to you. If you have further concerns and issues, you may contact SSS customer service at 1800 10 225 5777 or by email at email@example.com.