Estimated reading time: 6 minutes

In times of financial need, the Social Security System (SSS) offers a valuable resource for employees through its salary loan program. If you’re looking for assistance and considering applying for a salary loan in SSS, this guide is here to help. You can navigate the application process smoothly and efficiently by following the step-by-step process outlined below.

What is an SSS Salary Loan?

A salary loan in SSS is a short-term loan program offered to eligible members of the Social Security System. It allows individuals to borrow money based on their monthly salary or income. The loan amount is determined by the member’s contributions and the length of their membership. 

The loan is repaid through monthly deductions from the member’s salary over a specific period. The program aims to provide temporary financial relief for personal expenses, debts, or emergencies. Meeting eligibility criteria and submitting the required documents are necessary to apply for the loan. Responsible utilization and adherence to repayment terms are essential for members to benefit from this financial assistance.

Who Are Qualified To Apply for an SSS Salary Loan?

The SSS member must fulfill the following eligibility standards to be eligible for the salary loan:

• Applicants must be younger than 65 at the time of application.

• Must be a regular paying SSS member (working or now contributing, self-employed, or voluntary). The member must have made 36 monthly payments, 6 of which must have been made during the 12 months before the month of the application’s submission, in order to be eligible for a one-month loan. Meanwhile, the member must have made 72 monthly payments, 6 of which must have been made during the previous 12 months before the month of application, to be eligible for a two-month loan.
• When it comes to the payment of contributions and loan payments, the employer must be informed if the borrower is employed.
• Has not received any of the ultimate benefits, such as the compensation for death, retirement, or complete and permanent disability.
• Has not been disqualified as a result of SSS fraud.

How Much Money Can I Borrow through the SSS Salary Loan Program?

Members who have paid 36 monthly contributions qualify for a one-month salary loan based on the average of their 12 latest Monthly Salary Credits (MSCs). The loan amount is rounded to the subsequent higher MSC or the amount applied for, whichever is lower. The maximum loanable amount for members with a full Monthly Salary Credit of Php 25,000 is Php 25,000.

On the other hand, members who have paid 72 monthly contributions qualify for a two-month salary loan, equivalent to twice the average of their posted MSCs in the last 12 months. Similar to the one-month loan, it is rounded up to the subsequent higher MSC or the amount applied for, whichever is lower. Members in this category who pay the maximum contribution amount can borrow a maximum loanable amount of Php 50,000.

It’s important to note that the actual loan amount received will be subject to deductions, including advance interest and a service fee. For instance, if borrowing Php 37,000, the final amount received after deducting advance interest (Php 314.25) and a service fee (Php 370) will be Php 36,315.75.

Step-by-Step Guide to Applying for a Salary Loan in SSS

You can navigate the application process smoothly and efficiently by following the step-by-step process outlined below.

What Are the SSS Salary Loan Requirements?

Per the SSS Circular 2019-0142, member-borrowers who want the SSS salary loan must now apply online.

To complete the SSS salary loan application, you need the following:

• Internet connection
• My.SSS account.
• Preferred electronic loan disbursement channel where you want to receive the loan proceeds.

As of 2021, loan disbursement via check is no longer available. Instead, you can choose from any of the following disbursement methods:

• PISONet. Using the Disbursement Account Enrollment Module in your My.SSS account, you may enroll in any PESONet-accredited bank account that you have. Joint accounts won’t be approved, so be sure you’re the only one with access to the report.

• E-wallet/RTC/CPO. You can get the loan profits through M Lhuillier using GCash, PayMaya, DCPay Philippines, or DBP Cash Padala if you don’t have a bank account accredited by PESONet.

• Quick Card UBP issued by SSS. It is not permitted to link UBP accounts with other government agencies (such as the Pag-IBIG Loyalty Card). UBP Quick Cards only have 12 digits and begin with “10”. 

How To Apply for a Salary Loan in SSS Online?

To know how to file your SSS salary loan application online, follow this step-by-step guide:

Step 1: Create a My.SSS Account

Step 2: Enroll a Bank Account for Your SSS Salary Loan Disbursement

For SSS salary loan disbursement through a bank account, you can upload any of the following: 

• An ATM card that shows the full account number, account holder’s name, and the issuing bank 
• Bank certificate/statement issued after 2019
• Foreign remittance receipt
• Passbook
• Screenshot of the online/mobile banking account
• Validated deposit slip

Step 3: File Your Salary Loan Application Online

Once you’ve registered in SSS online and enrolled in your disbursement bank account, you can apply for a salary loan. Here’s how:

1. Log in to your My.SSS account and click on E-Services > Loans > Apply For Salary Loan. Your loanable amount and local mailing address will be automatically displayed.
2. Select your desired loan amount. You may choose to borrow an amount lower than what is shown on the screen.
3. Select the disbursement account where you want to receive the loan proceeds.
4. Read the terms and conditions carefully. Tick the box for I agree to the Terms of Service before clicking Proceed.
5. View, download, or print the Loan Disclosure Statement. This document contains your monthly amortization schedule and loan interest. After viewing the statement, click on Proceed.
6. You’ll see a notification message on the screen with your SSS salary loan application details. Keep a copy of your transaction number. Alternatively, refer to the message sent to your registered email address or in the notification inbox of your My.SSS account.

Note: Walk-in application is only applicable to other SSS loans like Calamity Loan Assistance Program (CLAP), Educational Assistance Loan Program (EALP), and Emergency Loan Assistance Program (ELAP).

Closing Remarks

The Salary Loan program offered by the Social Security System (SSS) provides accessible and timely financial assistance to its members. With competitive interest rates and flexible repayment terms, the program offers an attractive option for members needing temporary funds. However, considering one’s financial situation and ability to repay, a responsible borrower is crucial. It’s essential to weigh the impact on future benefits and consider alternative options before taking on any debt.  – WhatALife!/Jayve

Source: (1), (2), (3)

---

Also read: GUIDE: How to apply for SSS Salary Loan ONLINE?