Budgeting your finances can be tricky at times. Just when you thought you had covered everything for the month, something comes up that turns the tables and forces you to take up a loan.
Regardless of the reason, employees who are in need of quick financial backing generally turn to salary loans to compensate. One option is to apply for an SSS salary loan.
SSS salary loan is a type of cash loan granted to a self-employed, employed, or voluntary member whose contributions are up-to-date. These loans are meant to aid members in need of short-term credit.
The SSS Salary Loan is available to all Social Security System contributors, including all currently employed, self-employed, and voluntary members.
Other eligibility requirements are as follows:
A month’s worth of salary loan: The member-borrower should have at least thirty-six (36) posted monthly contributions.
Two-month salary loan: The member-borrower should have at least seventy-two (72) posted monthly contributions.
However, note that six (6) of these posted contributions should have been made within twelve (12) months before the date or month of filing the salary loan application.
A member-borrower needs to submit the following documents and IDs when processing a salary loan:
For the valid ID requirement, both must have a signature, and at least one must have a photo.
If your authorized representative is filing the loan application on your behalf, the following requirements apply:
If the salary loan application is filed by the employer or the company’s authorized representative on behalf of the member borrower, the following documents must be submitted:
There are many ways for an individual to file an SSS loan.
For this purpose, the employer must have an active SSS web account.
Moreover, you, as an employer, must also submit an updated Specimen Signature Card (SSS Form L-501) bearing the member’s signature.
This card should be updated annually to prevent delays or potential rejection when processing the salary loan.
Since these officers are limited to Foreign Representative Offices in other countries, OFW member-borrowers may opt for an alternative channel. For instance, they can send the application requirements to their relatives in the Philippines.
Moreover, these authorized representatives may file the loan application at the local SSS offices. However, all documents issued by foreign countries need the authentication of the Philippine Consulate Embassy.
To get an SSS salary loan, members can process their application online through the SSS website by following these steps:
Be sure to indicate your desired loan amount and read through and agree to the terms and conditions, including the loan disclosure statement, before proceeding with the rest of the steps for your SSS salary loan online application.
The loan disclosure statement provides information regarding the monthly amortization schedule and the loan interest rate.
Once submitted, you can check the status of your SSS salary loan by logging back into your My.SSS account.
It usually takes 3–5 working days for an SSS salary loan to get approved.
The funds will then be credited to your enrolled bank account through the Disbursement Account Enrollment Module (DAEM).
The DAEM is a component of the My.SSS online portal that lets employers and members enroll their bank accounts to receive loan disbursements.
In other words, the SSS will credit the benefits and loan proceeds to the wallet or bank account that you register here.
Moreover, this is a secure and convenient option for members securing salary loans and the like, as it removes the need to go to the nearest SSS branch or office physically. This way, members simply have to link their registered financial account or e-wallet with their My.SSS profiles.
Once approved, the funds will go directly to their pre-registered bank accounts.
Go to the My.SSS website. Log in with your User ID and password.
Tick the “I’m not a robot” option, then click “Submit.”
You will see these two options under the Enrollment tab:
If you select the “Bank” option, a box will pop up stating that the Bank Account Name should be the same as the name registered in your SSS account. It also states that you will need to provide your correct Bank Account Number, not the card number on your ATM.
SSS also allows the disbursement of funds through digital wallets that are PESO participants. To enroll your digital wallet, you would only need to provide the mobile number connected to your account and follow the confirmation process.
The following e-Wallets are also supported and recognized as appropriate disbursing modules:
Attach the following required supporting documents:
Note that clear and readable colored JPEG images or PDF documents are recommended.
Depending on your selection, the actual proof of account may vary.
If you selected “Bank,” you will need to upload the following documents as proof of account:
Take a picture or scan any of the aforementioned documents and upload. The file(s) should either be in JPG or PDF formats only and must not exceed 3 MB in size.
If you selected “E-Wallet,” you will be required to upload a screenshot of your e-wallet mobile app account. Your name and mobile number must be clearly visible in the image.
You can use any of the following as valid IDs:
When taking a selfie for your SSS Salary Loan application, make sure to hold up your valid ID and proof of account. The image must clearly show the necessary information.
Wear appropriate attire and remove intrusive accessories such as earrings and necklaces.
Once you have uploaded the final attachments, check the box certifying that all the information provided is true and that you are allowing them to be used in SSS transactions.
Click on “Enroll” to proceed with the transaction. Then, click “Ok” to continue with the rest of the process. You will then see the Enrollment Confirmation on display.
An email notification regarding the Disbursement Account Enrollment will be sent to your registered email address. It states that your application has been submitted and will be evaluated.
After evaluation, you will receive another email indicating whether your DAEM application has been approved or rejected.
If the disbursement account is rejected, the mail will provide the reasons for it. You will be advised to re-enroll using a valid disbursement account or provide supporting attachments that are more readable and clear.
Members of the Social Security System with at least thirty-six (36) months’ worth of posted contributions are eligible to apply for the SSS salary loan. Six (6) out of the total posted contributions should have been made within the last twelve (12) months before the month of the application. The maximum loanable amount is equivalent to one (1) month’s worth of the member borrower’s salary.
How long before an SSS salary loan gets approved?
The SSS Salary Loan proceeds shall be credited to the registered bank account of the member borrower within three (3) to five (5) working days from the date of approval. You can access your SSS Salary Loan through any Megalink, Bancnet, or Expressnet Automated Machines.
What is the SSS salary loan interest rate in the Philippines in 2024?
The current SSS Salary Loan interest rate for 2024 is 10% per year. Moreover, the computation applies a diminishing principal balance, where the interest rate will continue to be charged against the outstanding principal balance until it is fully paid.
What is the two-month salary loan?
A one-month loan is the average of your last 12 monthly salary credits (MSCs), or the amount applied for, whichever is lower. On the other hand, the two-month loan is twice the average of your last 12 MSCs. In some cases, this is rounded to the next higher monthly salary credit, or the amount you applied for, whichever is lower.
How do I check my SSS loan status?
You may check your salary loan status by logging into your My.SSS account online. Aside from your loan status, you will also see other details about your loan here. Take note of the payment deadline and remit your payments through an SSS-authorized payment center.
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