How To Apply For An SSS Salary Loan

How To Apply For An SSS Salary Loan

Financial mishaps are inevitable at times and applying for a personal loan to help you power through such trying times isn’t always worth the trouble. If you need some funds to help you out in your financial struggles but don’t want to be stuck in high-interest debts, you’ll be delighted to know that the Social Security System (SSS) can actually extend financial help to their active members. 

One of the best options is the SSS salary loan. It’s technically a loan but you don’t have to deal with high-interest rates typically offered by loan sharks and some financial institutions. Party, it’s also your money – the amount you can loan is based on the amount of money you’ve already contributed to your SSS account. 

What are the application requirements?

The documents or paperwork needed to apply for the loan are not too extensive. Depending on who’s applying for who, the documents you may need are as follows:

Member-Borrower

  • Member Loan Application Form
  • SSS digitized ID or E-6 (acknowledgment stub) with two valid IDs, one of which has a recent photo.

If filed by Member-borrower’s Authorized Representative

  • Member-borrower’s duly accomplished Member Loan Application
  • Authorized Representative’s SS card or any two valid IDs both with signature and at least one with 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 Employer/Company’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 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.

How do I apply for an SSS loan online?

The Social Security System provides salary loans to members who have at least 36 months of continuous monthly contribution. The amount of the loan will be derived from the member’s total contribution.

  1. A one-month salary loan is equivalent to the average of the member borrowers’ latest posted 12 Monthly Salary Credits (MSCs), or amount applied for, whichever is lower.
  2. A two-month salary loan is equivalent to twice the average of the member borrowers’ latest posted 12 MSCs, rounded to the next higher monthly salary credit, or amount applied for, whichever is lower.
  3. The net amount of the loan shall be the difference between the approved loan amount and all outstanding balance of short-term member loans.
Qualifications

There are a handful of criteria that you must meet to be qualified for this loan and apply for it online.  

  • At least 36 months of continuous contribution.
  • Currently employed with the employer for at least a year (for employed individuals).
  • Monthly contributions must be up-to-date.
  • The member-borrower has not been granted final benefit, i.e., total permanent disability, retirement, and death.
  • The member-borrower must be under sixty-five (65) years of age at the time of application.
  • The member-borrower has not been disqualified due to fraud committed against the SSS.
If you tick all of the items mentioned above, here’s how you can apply for an SSS loan online.
  1. Log-in to your SSS online account.
  2. In your dashboard, hover over the “e-services” tab. It will drop down a list of menus including “Apply for a Salary Loan.”
  3. It will show you a loan application form. Complete the form and hit submit. 
  4. The website will show you an estimate of the loan and its monthly payment. 
  5. Provided you meet the eligibility requirements, your loan will be automatically approved. The funds will be disbursed to the method you select on your loan application. You can either receive it directly to your bank or have a cheque mailed to your address.
For your information

Your loan is generally payable in 24 monthly installments. Your due date each month varies depending on the applicable identification number, and whether you are employed or self-employed.

You can visit the SSS website to know more about their loan terms.

Offline and OFW SSS salary loan application

If you prefer to apply for the loan the old school way, you can file the application at the branch nearest your residence or business. The processing time, however, will still be the same as the online application. 

Meanwhile, OFWs who don’t have an online account can file the loan through the Philippine embassy in the country of their residence. SSS Foreign Representative Offices are usually within the embassy premises. 

How to perform an SSS online payment?

The SSS online payment is only available to BancNet debit cardholders and account holders in UnionBank. This process is beneficial to anyone who prefers to do online transactions and those who can’t be in the country to pay for their monthly contributions.  Online payment is quite easy and straightforward, here’s how you can do that.

Bancnet
  1. Log on to www.bancnetonline.com [Register with your BancNet card if you haven’t yet].
  2. On the homepage, click on your bank.
  3. Read the agreement in using BancNet Online and click the “I Agree” button if you agree with the Terms and Conditions.
  4. Click on ” Payment”.
  5. Fill out the required fields:
    • Biller/Institution
    • Account/ Subscriber Number
    • Bank Name
    • ATM Card Number
    • Member Number
    • Account Type. Savings or Check
    • Amount To Be Paid
  6. Using your mouse, enter your ATM PIN on the onscreen keypad.
  7. Click the Submit button.
  8. Details of your transaction will appear on the screen, Once verified that they are all correct, click “OK”.
  9. You may print the screen that shows your transaction details as your transaction receipt or click “ Close” to conclude the transaction.
Unionbank
  1. Log on to your UnionBank online account.
  2. Go to “bills” and choose SSS.
  3. Fill out the necessary information like your SSS number.
  4. Enter the amount then click pay.
  5. Wait for the browser to generate the receipt.

Repayment through direct deduction from the monthly salary

The salary loan submitted online by an employed member will be directed to the employer’s My.SSS account for certification, hence, the employer should also have a SSS web account. If the application is done through the branch, the receipt should be provided to the employer.

This way, the SSS loan can be repaid automatically by deducting the repayment from the applicant’s salary. 

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How to check the status or the balance of your loan?

The information will be shown on your SSS.my account, through the same page. If your loan is still under process, the status will be shown there. If it’s already granted and active, the remaining balance will show up there instead. 

Here’s how you can check it:

  1. Log on to your My.sss account. 
  2. On the dashboard, click on the e-services” tab. It will bring up an information page that also displays a different set of headers you can click on. 
  3. Hover over to the “Loan” tab it will show a dropdown with a set of options. 
  4. On the dropdown, click “Loan status/info”.

Details on renewal or re-applying

SSS’s terms indicates that renewal can be done once the member managed to settle at least 50% of the original principal amount, and half of the term has already passed. Both criteria must be met for renewal. 

What happens when you default

Members who fail to pay their SSS Salary Loan will have their unpaid loan deducted from the benefits that they can claim. 

  1. For self-employed/voluntary member, deduction shall be from short-term benefits (Sickness/Maternity/Partial Disability).
  2. In case of member-borrower’s death, total disability or retirement under 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.

Sample computation

The eligible loan amount will be equivalent to the average of the member-borrower’s latest posted 12 Monthly Salary Credits (MSCs).

To check how much your monthly SSS contribution is, read more about it in our article that talks about the Basics of SSS.

For your information
  • Monthly salary: ₱20,000
  • Monthly SSS contribution (employer + employee share): ₱2,430
  • Salary loan amount (1 month): ₱2,439 x 12 months =  ₱29,160

Table of loan details (interest, loan amount and terms, payment and disbursement schedule, fees and other penalties, etc.)

Loan amountEquivalent to the borrower’s 12-months worth of contribution. 
Interest rate10% per annum (diminishing)
Repayment term2 years term
Fees1% of the loan as service fee
Penalties1% per month until the loan is fully paid for a loan not remitted on the due date. 

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