Wondering how much you’ll pay monthly for your ₱38,000 SSS Salary Loan?
If you’re planning to borrow ₱38,000 from SSS this year, this detailed guide will show you the exact monthly amortization, your net take-home amount, and how the pro-rated interest affects your actual loan release.
Let’s break down everything step-by-step using SSS’s official 8% interest rate and real computation examples.
🏦 What Is an SSS Salary Loan?
The SSS Salary Loan is a short-term loan for active SSS members who need extra cash for personal or emergency expenses.
Payments are automatically deducted from your salary if you’re employed or can be made voluntarily if you’re self-employed.
You can apply for:
1-Year Loan: up to 1 month of your Average Monthly Salary Credit (AMSC)
2-Year Loan: up to 2 months of your AMSC
Because ₱38,000 exceeds ₱25,000, it qualifies as a 2-year (24-month) loan.
⚙️ Official SSS Computation Rules (2025)
Rule
Description
Interest Rate
8% per annum (based on diminishing balance)
Service Charge
1% of approved loan amount (deducted upfront)
Pro-Rated Interest
Charged upfront for days from approval date to end of next month
Loan Term
24 months
Penalty (if late)
1% per month on overdue amortization
Early Payment
Allowed anytime without penalty
Start of Amortization
Usually two months after approval
🧮 Step-by-Step ₱38,000 Salary Loan Computation
Assuming your loan is approved on March 12 2025, SSS will charge pro-rated interest for March 12 – April 30 (50 days) before your regular amortizations begin in May.
🧾 Step 1 – Compute Upfront Deductions
Item
Computation
Amount (₱)
Approved Loan
—
38,000
Service Charge (1%)
38,000 × 1%
380
Pro-Rated Interest (50 days @ 8%)
38,000 × 0.08 × 50 ÷ 365
417
Total Deductions
—
797
Net Proceeds (Take-Home Cash)
38,000 − 797
₱37,203
✅ You’ll actually receive ₱37,203 after deductions are applied.
🧾 Step 2 – Compute Monthly Amortization
Annual interest = 8%
Monthly interest = 0.67%
Term = 24 months
➡️ Monthly Amortization = ₱1,725 ➡️ Total Repayment = ₱41,400 ➡️ Total Interest = ₱3,400 (approx.)
✅ Total Payment: ₱41,400 ✅ Total Interest: ₱3,400 ✅ Upfront Deductions: ₱797 ✅ Net Take-Home: ₱37,203
💡 Try the Free SSS Salary Loan Calculator
Before you apply, use this tool to confirm your exact deductions and monthly payments: 👉 SSS Salary Loan Calculator
You can quickly:
Compare 1-year vs 2-year loan terms
See service + pro-rated interest deductions
View total interest & net take-home
📋 Eligibility Requirements for ₱38,000 Loan
Requirement
Description
Active Member
Must be actively contributing to SSS
Posted Contributions
At least 72 posted contributions, 6 in last 12 months
Loan Status
No existing unpaid or delinquent loan
Employer Compliance
Employer must be up-to-date with SSS remittances
Employment Type
Employed, self-employed, or voluntary
📉 Why Pro-Rated Interest Is Deducted Upfront
When your loan is approved mid-month, SSS charges interest for the remaining days of that month + the entire next month.
For example: Approved March 12 → charged for March 12 to April 30 (50 days).
Step
Description
Computation
1
Days Covered
50
2
Annual Interest
₱38,000 × 8% = ₱3,040
3
Daily Interest
₱3,040 ÷ 365 = ₱8.33/day
4
Multiply by Days
₱8.33 × 50 = ₱417
✅ ₱417 is deducted upfront as pro-rated interest. This ensures you pay interest only for the actual 50 days before your amortization starts — a fair and accurate system.
⚖️ Payment, Renewal, and Default Rules
Policy
Description
Late Payment Penalty
1% per month on overdue amount
Loan Renewal
Allowed after 12 months (half term paid)
Early Full Payment
Allowed anytime without penalty
Default Policy
SSS may offset balance from future benefits
👩 Example Case: ₱38,000 Loan for a Working Mom
Ella, an SSS member for 7 years, applies for a ₱38,000 loan on March 12 2025.
Ella’s loan is automatically deducted from her salary, so she doesn’t worry about missing payments.
🧾 TL;DR Summary
Item
Details
Loan Amount
₱38,000
Service Charge (1%)
₱380
Pro-Rated Interest (50 days)
₱417
Net Cash Released
₱37,203
Monthly Amortization
₱1,725
Total Repayment
₱41,400
Total Interest
₱3,400
Loan Term
24 months
Penalty (if late)
1% per month
First Payment Due
2nd month after approval
Eligibility
72 contributions (6 recent)
❓ Frequently Asked Questions (FAQs)
1. How much will I receive from ₱38,000 loan? You’ll receive ₱37,203 after the ₱380 service charge and ₱417 pro-rated interest are deducted.
2. When does payment start? Typically on the second month after approval (approved in March → first payment in May).
3. Can I settle the loan early? Yes! Early full payment is allowed without penalty and saves you interest.
4. What happens if I miss a payment? A 1% monthly penalty applies, and SSS may deduct the balance from future benefits.
5. Can I renew my loan before it’s fully paid? Yes. You can apply for renewal once half of the term (12 months) is paid.
🌟 Final Thoughts
The ₱38,000 SSS Salary Loan is a manageable and low-interest option for members who need extra funds. After a ₱797 deduction, you’ll receive ₱37,203 and pay only ₱1,725 per month for 24 months — automatically handled through payroll.
Before applying, make sure your contributions and your employer’s remittances are up-to-date.
