How Can I Use the SSS Salary Loan Disclosure Statement to Check My Loan’s Total Cost?
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How Can I Use the SSS Salary Loan Disclosure Statement to Check My Loan’s Total Cost?
When your SSS Salary Loan gets approved, you’ll receive a Disclosure Statement — a document many members overlook, even though it tells you exactly how much your loan will really cost.
If you’ve ever wondered why the amount you received is less than what you applied for, or why the total payment is slightly higher, this article is for you.
Let’s break down what the Disclosure Statement means, how you can use it to calculate the total cost of your SSS loan, and how tools like the SSS Salary Loan Calculator can help you verify it yourself.
💡 What Is the SSS Salary Loan Disclosure Statement?
The SSS Salary Loan Disclosure Statement is a document that details all the financial components of your loan. It’s required by law (Truth in Lending Act) to ensure borrowers understand every peso involved in their loan.
Think of it as your loan transparency sheet — it shows how your loan amount, interest, and deductions are computed before the money is released.
📄 What’s Inside the SSS Disclosure Statement?
Your Disclosure Statement typically includes the following key details:
Section
Description
Loan Amount Approved
The total amount approved by SSS before deductions.
Service Fee (1%)
A small charge deducted upfront. Example: ₱200 for a ₱20,000 loan.
Pro-Rated Interest
Interest charged from the approval date until the end of the next month.
Net Proceeds
The actual cash you’ll receive after all deductions.
Interest Rate
8% per annum on the diminishing balance.
Loan Term
Either 12 or 24 months, depending on your loan type.
Amortization Amount
The monthly amount you must pay or that your employer remits to SSS.
Total Payment Due
The overall amount you’ll pay back (principal + interest).
💰 Step-by-Step: How to Check Your Loan’s Total Cost Using the Disclosure Statement
Let’s walk through how you can verify your SSS loan cost using the information from your Disclosure Statement.
Step 1: Identify the Principal Loan Amount
Look for the line “Loan Amount Approved.” Example: ₱20,000 (this is your full loan before deductions).
Step 2: Check for Deductions
You’ll usually see:
1% Service Charge: ₱200
Pro-rated Interest: Example, ₱219.18 (computed from approval date to end of next month)
Net Proceeds: ₱20,000 – ₱419.18 = ₱19,580.82 (this is what you’ll actually receive)
Step 3: Verify the Monthly Amortization
If it’s a 2-year loan, divide ₱20,000 into 24 months — including interest (8%/year).
Use the SSS Salary Loan Calculator to confirm this amount. The calculator shows your estimated monthly amortization and total repayment based on your loan term and interest rate.
Step 4: Compute the Total Loan Cost
To find the total cost, multiply your monthly amortization by the number of months, then subtract your principal.
Example:
Monthly amortization: ₱904.17
Loan term: 24 months
Total repayment: ₱904.17 × 24 = ₱21,700.08
Total Cost: ₱21,700.08 – ₱20,000 = ₱1,700.08 (interest + service charge)
📊 Example Breakdown: ₱20,000 SSS Salary Loan
Item
Description
Amount
Loan Amount
Approved by SSS
₱20,000.00
Service Charge
1%
₱200.00
Pro-Rated Interest
50 days at ₱4.38/day
₱219.18
Net Proceeds
Amount credited to your account
₱19,580.82
Monthly Amortization
24 months
₱904.17
Total Payment
₱904.17 × 24
₱21,700.08
Total Loan Cost
(Interest + Fees)
₱1,700.08
So even if you borrowed ₱20,000, your total repayment will be ₱21,700.08 over 2 years.
🧮 Why Use the SSS Salary Loan Calculator?
If you want to double-check the computation or test how much you can borrow, use the SSS Salary Loan Calculator.
You can input:
Your Average Monthly Salary Credit (AMSC)
Loan type (1-year or 2-year)
Interest rate and term
The calculator instantly shows:
Estimated loan amount
Monthly amortization
Total repayment This helps you verify if the figures in your Disclosure Statement match SSS rules.
⚠️ Common Mistakes When Reading the Disclosure Statement
Ignoring the Pro-Rated Interest Many members think SSS “deducted too much.” In reality, it’s just interest charged upfront for days before amortization begins.
Assuming the Net Proceeds Is the Loan Amount The amount you receive is after fees — your actual loan is the approved amount.
Not Considering Deductions by Employer Employers automatically deduct amortizations, so make sure they remit payments on time to avoid penalties.
Missing the Loan Renewal Interest Rule If you previously had condonation, you may be charged 10% interest instead of 8%.
🏦 Understanding Pro-Rated Interest (With Example)
Let’s clarify this common confusion.
Example: Loan approved on March 12, 2025.
Coverage: March 12–31 (20 days) + full April (30 days) = 50 days
Annual interest = 8% × ₱20,000 = ₱1,600/year
Daily interest = ₱1,600 ÷ 365 = ₱4.38/day
Pro-rated interest = ₱4.38 × 50 = ₱219.18
✅ SSS deducts this ₱219.18 upfront to cover the period before amortization starts in May.
💡 TL;DR (Quick Summary)
If you’re short on time, here’s the gist:
The SSS Disclosure Statement explains every deduction and cost in your loan.
You can compute the total loan cost by adding your amortizations and subtracting the original loan amount.
Don’t be alarmed if your received amount is lower — service fees and pre-interest are deducted upfront.
1. What is the purpose of the SSS Salary Loan Disclosure Statement?
It shows all deductions, interest, and total payment obligations — ensuring full transparency of your loan terms.
2. Why is the released amount smaller than my approved loan?
Because SSS deducts the 1% service charge and pro-rated interest upfront before releasing the funds.
3. How do I check if my employer remitted my amortizations?
You can verify through your My.SSS account under “Loans > Loan Info.” Check if monthly payments are posted.
4. Can I repay my SSS Salary Loan earlier?
Yes. You can pay early or in full anytime without penalties. This can even reduce your total interest cost.
5. What happens if I fail to pay on time?
A 1% penalty per month applies to delayed payments, and SSS may deduct unpaid amounts from future benefits.
🏁 Final Thoughts
Your SSS Salary Loan Disclosure Statement is more than just paperwork — it’s your roadmap to understanding how your loan works.
By learning how to read it, you’ll know exactly:
How much you owe,
When to pay, and
What portion goes to interest.
Before applying, always check your estimated repayment using the SSS Salary Loan Calculator. This ensures you’re borrowing wisely and staying financially in control.
