Republic of the Philippines Social Security System (2024)

OVERVIEW

A cash loan granted to an employed member or a currently-paying self-employed or voluntary member. It is intended to meet the member's short-term credit needs.

.QUALIFYING CONDITIONS

An employed member or a currently-paying self-employed or voluntary member
For one-month loan: 36 monthly contributions, six (6) of which should have been posted in the last twelve (12) months prior to the month of application.
For two-month loan: 72 monthly contributions, six (6) of which should have been posted in the last twelve (12) months prior to the month of application.
If employed, the member’s employer must be updated in the payment of contributions and loans. The member must also be updated in the payment of other loans with SSS.

AMOUNT AND TERMS OF LOAN

A one-month loan is equivalent to the average of member’s last twelve (12) Monthly Salary Credits (MSC), or the amount applied for, whichever is lower.

A two-month loan is equivalent to twice the average of the member’s last twelve (12) MSCs posted, rounded to the next higher MSC, or the amount applied for, whichever is lower.

The loan shall be charged an interest rate of ten percent (10%) per annum until fully paid, based on diminishing principal balance, and shall be amortized over a period of 24 months.

IMPORTANT REMINDERS

If the loan is not fully paid at the end of the term, interest shall continue to be charged, as well as penalties, on the outstanding principal balance until fully paid.

In case of default, the arrearages/unpaid loan shall be deducted from the member’s future long-term benefit claim (e.g. Retirement, total disability & death).

The loan can be renewed after payment of at least fifty percent (50%) of the original loan amount and at least fifty percent (50%) of the loan term has lapsed.