Everything You Need To Know About The SSS Short Term Loan In The Philippines

who are you?

A SSS Salary loan is intended to meet a SSS Member’s short term credit needs. SSS Salary Loan is payable two years with a 10% interest rate for one year. If you’re planning to apply for your very first SSS Salary Loan, you just have to submit the following requirements:

• You must be employed Member with 36 months posted contributions for one-month loan or 72 months posted contributions for two-month loan. You can also be an employed member currently paying self-employed or voluntary member who already contributed 6 monthly contributions for the last 12 months prior to the month of filing of application.
• The Member should be updated with regards to his contributions and loan remittances including Pag Ibig Loan. This also applies to your Employer.
• A member who’s granted their Final Benefit pay (Total Permanent Disability, Retirement and Death) is not eligible to apply for the Short Term Loan.
• The Member has not been disqualified due to committed against the SSS.

The Big Fat Check!

A one-month SSS Salary loan is equal to the average of the Member’s latest 12 monthly credits posted. While a Two Month loan is twice the average of the member’s latest 12 monthly salary credits but this must not exceed P24,000. Nonpayment of loan charges 1% per month. Another thing, SSS charges you a 1% Service fee of the loan amount and also deducted from your check.

The Burden…

Everybody loves receiving money. When I got my first check, I got to smile every time I think of it. Payday arrives and saw my pay slip with deductions from SSS, though it’s not that much. Remember, your SSS Salary loan is payable for two years. If you had a P12,000 loan from them, you have to pay them P500 plus every month. That’s what I’m saying about “The Burden”.

Both SSS Salary loans were payable in two (2) years or 24 equal monthly installments and with an interest rate of 10% per year. First year’s interest is already deducted in advance when you received your check while the second year’s interest is included proportionately in your monthly amortizations/payments. Payments for SSS Salary Loan are made on or before the 10^th of the month.

SSS Salary Loan Payments can be made by the following:
• Salary Deductions – It is done by your employer before they release your monthly salary. They deduct the payment and they’ll be the one remitting it.
• Payment through Authorized Banks – this is for the Self Employed or Voluntary Members who availed SSS Salary Loan

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.

How Do You Do It?

If you are:

An employed member can  submit an accomplished SSS Form ISL-101 Member Loan Application Revised March 2004 which you can download by clicking this link 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 fisher folk 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)

After accomplishing every single requirement, you can now head down to the nearest SSS branch or representative office. The SSS Representative/Officer will tell you about the when will you receive your check for you to be able to pick it up (applies only to Self Employed). Employed Members can wait in their office tables because SSS will send your check to your Employer.

Still looking for easier way to apply for SSS Salary Loan? Why don’t you try to Learn How to Apply for SSS Salary Loan Online. I highly recommend applying SSS Salary Loan Online first before doing it manually. Let us know in the comments which way you find more effective.

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Nico Robin Salazar Nico Robin is a freelance blogger and college drop out student. He writes about anything that interests him. While being a college drop out student and an unemployed citizen of the Philippines, he makes his time worth while by doing volunteer works.