Qualifications on or Before Applying SSS Salary Loan

If you want to apply SSS salary loan you must read these qualifications listed below before you proceed to form application process. This is a reference information to those who are asking if they are qualified to avail SSS salary loan. Borrower must meet all the conditions posted to be able to benefit the 1 month, 2 month cash loan.

To those who are qualified and planning to avail this program, you can check details provided below if you meet the qualifications. If you're not sure of your status you can also call SSS hotline or visit any of their branches nearest you.

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Qualified to Avail SSS Salary Loan

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.

1.  For one-month loan, the member-borrower must have 36 posted monthly contributions prior to the month of  filing of application. Six (6) of which should be within the last twelve (12) months.
2.   For a two-month loan, the member-borrower must have 72 posted monthly contributions prior to the month of filing of application. Six (6) of which should be within the last twelve (12) months.

• If the member-borrower is employed, the employer must be updated in contributions and loan remittances.
• 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.
• The member-borrower must be under 65 years of age at the time of application.
• The member-borrower has not been granted final benefit (total permanent disability, retirement and death).
• The member-borrower has not been disqualified due to fraud committed against the SSS.

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

REPAYMENT TERM AND SCHEDULE OF PAYMENT
The loan shall be payable within two (2) years in 24 monthly installments.
The monthly amortization shall start on 2nd month following the date of loan, which is due on or before the payment deadline, as follows: See schedule of payment.

Payment shall be made at any SSS branch with tellering facility, SSS-accredited bank or SSS-authorized payment center.

INTEREST AND PENALTY
The loan shall be charged an interest rate of 10% per annum based on diminishing principal balance, and shall be amortized over a period of 24 months
Interest of 10% shall continue to be charged on the outstanding principal balance until fully paid
Any excess in the amortization payment shall be applied to the outstanding principal balance
Loan amortization not remitted on due date shall bear a penalty of 1% per month until the loan is fully paid.
SERVICE FEE
A service fee of 1% of the loan amount shall be charged and deducted from the proceeds of the loan.

LOAN RENEWAL
Renewal shall be allowed after payment of at least 50% of the original principal amount and at least 50% of the term has lapsed.

Proceeds of renewal loan is any amount greater than or equal to zero as long as the outstanding balance on the previous loan is deducted.
What are documents, forms and papers needed for salary loan applications? SSS Salary Loan Application Requirements or you may also read SSS Text Inquiry for Loan Contributions and Application Status. (Source)