Loanable Amount
- A one-month salary loan is equivalent to the average of the member-borrower’s twelve (12) latest posted Monthly Salary Credits (MSCs), rounded to the next higher MSC, or amount applied for, whichever is lower.
- A two-month salary loan is equivalent to twice the average of the member-borrower’s twelve (12) latest posted MSCs, rounded to the next higher MSC, or amount applied for, whichever is lower.
- The net amount of the loan shall be the approved loan amount less service fee, pro-rated interest, and outstanding balance of previous short-term member loans, if any.
Interest Rate, Penalty and Service Fee
- The loan shall be charged an interest rate of 10% per annum until fully paid, computed on a diminishing principal balance, and shall be amortized over a period of twenty-four (24) months.
- Pro-rated interest from date of loan granting up to the end of the month prior to first amortization month shall be deducted in advance from the loan proceeds.
- 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. A delay of a fraction of a month shall be charged a full month penalty.
- Aggregate unpaid obligation equivalent to more than six (6) monthly amortizations shall result to loan default. The full balance of a defaulted loan shall become due and demandable. A defaulted account is subject to 10% interest per annum charged on the outstanding principal balance and 1% penalty per month on unpaid principal and interest until fully paid.
- A service fee of 1% of the loan amount shall be charged and deducted from the proceeds of the loan.
Repayment Term and Schedule of Payment
- The loan shall be payable within two (2) years in twenty-four (24) equal monthly amortizations.
- The loan amortization shall start on 2nd month following the date of the approval of the loan.
- Payment deadline shall be on or before the last day of the month following the applicable month. Please see sample illustration below:
| Applicable Month | Payment Deadline |
| December 2024 | 31 January 2024 |
| January 2024 | 28 February 2024 |
| February 2024 | 31 March 2024 |
| … and so on | … and so on |
4. In case the payment deadline falls on a Saturday, Sunday, or Holiday, payment may be made on the next working day.
5. Payment shall be made at any SSS branch offices with payment facility, SSS-accredited bank, or SSS-authorized payment centers.
Loan Renewal
- Renewal of loan shall be allowed after payment of at least 50% of the original principal amount and when at least twelve (12) months has lapsed.
- Proceeds of renewed loan may be any amount greater than or equal to zero, provided that the outstanding balance on the previous loan has been deducted.
Consequence of non-payment
In case the member-borrower fails to immediately pay the outstanding balance, the arrearages/unpaid loan, as well as the interest and penalty thereon, shall be deducted from the benefits being claimed by the member, as follows:
- For employed member – final benefits (total disability/retirement/death).
- For self-employed/voluntary member – short term benefits (sickness/maternity/partial disability) or final benefits (total disability/retirement/death).
Other Conditions of the Loan
Any overpayment on a previous loan shall be subject to validation of SSS and if valid, shall be applied to the active loan, if any. If there is no active loan, it shall be refunded to the member-borrower upon his/her request.
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