One of the benefits that the Philippine Social Security System offers its members is the Salary Loan. This SSS loan is a privilege that the agency gives to its active members who require assistance with short-term financial needs.
What Are the Benefits of a SSS Salary Loan?
Under this type of SSS loan, members are entitled to borrow an amount equivalent to their 1- or 2-month salary. The actual loan value shall be computed based on the average monthly salary of the member over the last 12 months of employment. This amount is subject to a 10% interest rate.
A service charge for SSS loan processing amounting to 1% of the total amount will also be collected. The borrowing member shall then begin making payments on the second month following loan approval, with the total amount amortized over a period of 24 months.
Payments for this SSS loan may be made directly to the SSS or to any of its accredited banks. If the member is presently employed, payment remittances shall be made through the employer.
