SSS salary loan

After the devastation brought by typhoon Ondoy in our country where many families were left homeless, their hope now lies on government’s help.

For employees and workers of private and government institutions they can rely on their SSS and GSIS benefits.

To those who will apply for SSS salary loan, here are some info from SSS website:

What is a salary loan?

It is a loan intended to meet a member’s short-termcredit needs.

Who may qualify for a salary loan?

1.An employed, currently paying self-employed or voluntary member (SE/VM) who has 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.If the member-borrower is employed, the employer must be updated in contributions and loan remittances.

3.The member-borrower must be updated-current in the payment of other member loans, which include educational, stock investment, MADE & housing loans granted under the Unified Housing Loan program (UHLP) or direct from SSS.

4.The member-borrower has not been granted final benefit (total permanent disability, retirement and death).

5.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.

What are the papers/documents needed for filing a salary loan?

An employed member shall submitan accomplished SSS Form ISL-101 (Member Loan Application Revised March 2004) and present the digitized SSS ID cards or E-6 acknowledgement stub with 2 (2) IDs listed below one of which with recent photo and date of birth.

A self-employed, voluntary member, overseas worker, non-working spouse, farmer or fisherfolk and house hold-helper shall submit an accomplished SSS Form ISL-101 and present the digitized ID card or E-6 acknowledgement 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
• Passport
• 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.

For more details about SSS Salary Loan application you may visit the website www.sss.gov.ph

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2 Responses to “SSS salary loan”

  1. maribel says:

    please send me requirements for ofw, coz now im here in united arab emirates… just want to know how much i can avail on the loan…. thanks!

  2. pinaymom says:

    Hi Maribel! I have a follow up post regarding SSS loans and benefits for OFWs. Please check this out: http://bestpinaymom.com/2009/11/philippines-sss-benefits-and-loan-privileges-for-ofws/

    Thanks 🙂