Thinking of applying for a ₱42,000 SSS Salary Loan this 2025?
Here’s your full breakdown — monthly payment, total interest, deductions, and actual take-home cash — using SSS’s official 8% annual interest.
Many members are surprised when the amount they receive is smaller than expected. Don’t worry — that’s normal! Before release, SSS deducts two things:
A 1% service charge, and
A pro-rated interest for around 50 days (the period before your first payment starts).
Let’s compute this step by step for ₱42,000.
🏦 What Is an SSS Salary Loan?
The SSS Salary Loan is a financial benefit available to employed, self-employed, and voluntary members. It helps cover emergency needs, medical costs, or other personal expenses.
SSS Salary Loan Options
Loan Type
Maximum Loanable Amount
Term
1-Year Loan
1 × AMSC (up to ₱25,000)
12 months
2-Year Loan
2 × AMSC (up to ₱50,000)
24 months
Since ₱42,000 is above ₱25,000, it qualifies as a 2-year (24-month) loan.
⚙️ Official SSS Loan Computation Rules (2025)
Rule
Description
Interest Rate
8% per year (diminishing balance)
Service Charge
1% of the approved amount
Pro-Rated Interest
Charged upfront (around 50 days)
Loan Term
24 months
Penalty (if late)
1% per month
Early Settlement
No penalty
Start of Amortization
Usually 2 months after approval
🧮 Step-by-Step ₱42,000 Salary Loan Computation
Assume approval date: March 12, 2025 SSS charges interest from March 12 to April 30 (50 days) before regular payments begin in May.
🧾 Step 1 – Deductions Before Release
Item
Computation
Amount (₱)
Approved Loan
—
42,000
Service Charge (1%)
42,000 × 1%
420
Pro-Rated Interest (50 days)
42,000 × 0.08 × 50 ÷ 365
460
Total Deductions
—
₱880
Net Take-Home Amount
42,000 − 880
₱41,120
✅ Cash Released: ₱41,120
🧾 Step 2 – Monthly Amortization
Annual Interest: 8%
Monthly Interest: 0.67%
Term: 24 months
➡️ Monthly Amortization = ₱1,914 ➡️ Total Payment = ₱45,936 ➡️ Total Interest = ₱3,936
When your loan is approved mid-month, SSS computes interest for the rest of that month plus the next one. This ensures you only pay for the actual days before your first amortization.
Step
Description
Computation
1
Days Covered
50
2
Annual Interest
₱42,000 × 8% = ₱3,360
3
Daily Interest
₱3,360 ÷ 365 = ₱9.21/day
4
Multiply by 50 days
₱9.21 × 50 = ₱460
✅ ₱460 is deducted upfront, fair and accurate for the pre-amortization period.
⚖️ Loan Payment and Renewal Policies
Policy
Description
Late Payment Penalty
1% per month on overdue amount
Loan Renewal
Allowed after 12 months (half of term paid)
Early Settlement
Allowed anytime with no penalty
Default Policy
Unpaid balance deducted from future benefits
👩 Example Case: ₱42,000 for a Working Mom
Carla, a regular employee since 2015, applied for ₱42,000 in March 2025.
Her repayments are auto-deducted through her payroll — easy, fixed, and stress-free.
🧾 TL;DR Summary
Item
Details
Loan Amount
₱42,000
Service Charge (1%)
₱420
Pro-Rated Interest (50 days)
₱460
Total Deductions
₱880
Net Proceeds (Take-Home)
₱41,120
Monthly Amortization
₱1,914 × 24 months
Total Payment
₱45,936
Total Interest
₱3,936
Loan Term
24 months
Penalty (Late Payment)
1% per month
Eligibility
72 contributions (6 recent)
❓ FAQs
1. How much will I receive from ₱42,000? ₱41,120 after ₱880 deductions (service + interest).
2. When does repayment start? Usually two months after approval (e.g., approved March → start May).
3. Can I pay early to save interest? Yes! You can pay anytime without penalty.
4. What if I miss a payment? A 1% monthly penalty applies; unpaid balances may be deducted from your future SSS benefits.
5. When can I renew my loan? After at least 12 months or once half the term is paid.
🌟 Final Thoughts
A ₱42,000 SSS Salary Loan gives you flexible repayment and low interest at only 8% annually. After a small ₱880 deduction, you’ll take home ₱41,120 and pay ₱1,914 monthly for 24 months — automatic, affordable, and transparent.
