MEMBER LOANS

SALARY LOAN
The Social Security Commission under Resolution No. 316-s.2012 dated 18 April 2012,
approved the amendments on the existing guidelines of the SSS Short-Term Member Loans.
What is a salary loan?
It is a privilege granted by SSS to covered employees to meet the member's short-term
credit needs.
Who may qualify for a salary loan?
All currently employed, currently contributing self-employed or voluntary member.
For one-month loan, the member-borrower must have 36 posted monthly contributions, six
(6) of which should be within the last twelve (12) months prior to the month of filing of
application.
For two-months loan, the member-borrower must have 72 posted monthly contributions, six
(6) of which should be within the last twelve (12) months prior to the month of filing of
application.
The member-borrower whose employer must be updated in the payment of contributions.
The member-borrower must be under sixty five (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.
How much is the loanable 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 Monthly Salary Credits (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.
How long will it take the member to pay back the loan?
The one-month or two-month salary loan shall be payable in 24 monthly installment to start
on the 2nd month following the date of the loan, which is due on or before the payment
deadline for loans per Circular No. 2011-003.
How much is the interest charged on a salary loan?
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. If the loan is not fully paid at
the end of the term, 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.
In case a loan is not paid, how much is the delinquency interest?
Loan amortization not remitted on due date shall bear a penalty of 1% per month until fully
paid.
Is there a service fee?

Yes. A service fee of 1% of the loan amount shall be charged and deducted from the
proceeds of the loan.