Salary loan for self-employed or voluntary SSS members
What is a salary loan?
It is a loan intended to meet an SSS member's short-term credit needs.
Who may qualify for a salary loan?
1. A currently paying self-employed or voluntary member can qualify if he/she has six (6) posted monthly contributions for the last 12 months prior to the month of filing of application.
- For one-month loan, the member-borrower must have 36 posted monthly contributions prior to the month of filing of application.
- For a two-month loan, the member-borrower must have 72 posted monthly contributions prior to the month of filing of application.
2. The member-borrower must be updated in the payment of other loans granted under the Unified Housing Loan Program (UHLP) or direct from SSS, such as educational or housing loans .
3. The member-borrower has not been granted final benefit (total permanent disability, retirement and death).
4. The member-borrower has not been disqualified due to fraud committed against the SSS.
How much is the loanable amount?
A one-month salary loan is equivalent to the average of the member’s latest 12 monthly credits posted.
A two-month salary loan is equivalent to twice the average of the member’s latest 12 monthly salary credits posted (rounded to the next higher monthly salary credit), but not to exceed P24,000.
How long will it take the member to pay back the loan?
The one-month or two-month salary loan shall be payable within two (2) years in 24 equal monthly installments.
How much is the interest charged on a salary loan?
The loan shall be charged a nominal interest of 10% per annum. First year’s interest shall be deducted in advance from the proceeds of the loan. Second year’s interest shall be included in the monthly amortizations.
In case a loan is not paid, how much is the delinquency interest?
Loan amortization not remitted on due date shall bear a penalty of 1% per month.
Is there a service fee?
Yes. A service fee of 1% of the loan amount shall be charged and deducted from the proceeds of the loan.
How does a member pay back the loan?
For self-employed or voluntary paying member-borrowers, the first amortization shall be paid to the SSS or any of its authorized banks on or before the 10th day of the third month following the date of loan.
In case of member-borrower’s death, total disability or retirement, what happens to the unpaid loan?
In case of member’s death, total disability or retirement under the Social Security Act, the entire amount or any unpaid amount of the loan as well as the interest and penalty thereon, if any, shall be deducted from the corresponding benefit.
What are the papers/documents needed for filing a salary loan?
A self-employed, voluntary member, overseas worker, non-working spouse, farmer or fisherfolk and household-helper shall submit an accomplished SSS Form ISL-101 and present the digitized ID card or E-6 acknowledgment stub with any two (2) of the following valid IDs, one of which with recent photo and date of birth.
- Unexpired Driver’s License
- Professional Regulation Commission (PRC) ID Card
- Postal ID
- School or Company ID
- Tax Identification Number Card (TIN)
Where can a borrower file the salary loan application?
A borrower may file the salary loan application at the nearest SSS branch or representative office.
When can a member renew a salary loan with the SSS?
The loan may be renewed after the prescribed amortization period of two (2) years. Balance of P500 or less shall be deducted from the proceeds of the new loan.
SOURCE: Adapted from the Philippine Social Security System, http://www.sss.gov.ph/sss/index2.jsp?secid=759&cat=3&pg=null