How Many Months or Installments Are Stated in the SSS Salary Loan Disclosure Statement?

If you just got approved for an SSS Salary Loan, you might be asking:

“Ilan bang buwan ko babayaran ito?”

The answer is in your SSS Salary Loan Disclosure Statement — a detailed document that tells you how long your repayment period is, how much each installment will be, and how interest is computed.

This article explains exactly how many months or installments are stated in your disclosure, how they’re calculated, and what happens if you pay late or renew your loan.

Let’s make it simple and easy to understand — even if it’s your first time applying for an SSS loan.

💡 What Is the SSS Salary Loan?

The SSS Salary Loan is a short-term loan designed to help active SSS members cover immediate financial needs — like bills, tuition, or maternity expenses.

It’s based on your Monthly Salary Credit (MSC) — the average of your last 12 monthly contributions — and comes with:

✅ Low interest (8% per year)
✅ Fixed monthly deductions
✅ Easy renewal terms

Once approved, you’ll receive a Salary Loan Disclosure Statement. This is a legal document under the Truth in Lending Act that shows everything about your loan — including your repayment period in months or installments.

🧾 What Is an SSS Salary Loan Disclosure Statement?

Your disclosure statement lists every financial detail of your loan, such as:

Approved principal amount
Service charge (1%)
Pro-rated interest (for early months)
Monthly amortization
Number of installments
Loan term (in months)
Total amount payable

This document is your guide — it helps you know exactly how long you’ll be paying and how much each month’s deduction will be.

📆 How Many Months Are in the SSS Salary Loan Term?

The number of months (or installments) stated in your SSS disclosure depends on the type of loan you availed:

Loan Type	Term Length	Number of Installments	Description
1-Year Loan	12 months	12 equal monthly installments	Based on 36 contributions (6 within the last 12 months)
2-Year Loan	24 months	24 equal monthly installments	Based on 72 contributions (6 within the last 12 months)

So, depending on your contribution record, your disclosure statement will show either 12 or 24 monthly installments.

💰 How the Loan Term Is Decided

For a 1-Year Loan (12 months)

You must have at least 36 posted contributions.
Six (6) of these must be within the last 12 months before application.
Maximum loan amount: 1 Month AMSC (or up to ₱25,000).

For a 2-Year Loan (24 months)

You must have at least 72 posted contributions.
Six (6) of these must be within the last 12 months.
Maximum loan amount: 2 Months AMSC (or up to ₱50,000).

The disclosure statement automatically reflects your loan term based on your contribution history and chosen amount.

🔍 Sample Disclosure Breakdown

Let’s see how it looks in real numbers.

Example 1: 1-Year Loan (₱10,000)

Detail	Amount
Approved Loan	₱10,000
Service Charge (1%)	₱100
Pro-Rated Interest	₱120
Net Proceeds	₱9,780
Term	12 months
Monthly Amortization	₱875–₱880
Total Installments	12

Example 2: 2-Year Loan (₱20,000)

Detail	Amount
Approved Loan	₱20,000
Service Charge (1%)	₱200
Pro-Rated Interest	₱219.18
Net Proceeds	₱19,580.82
Term	24 months
Monthly Amortization	₱900–₱950
Total Installments	24

As shown, your monthly amortization already includes interest — so your total repayment covers both principal and interest over time.

💻 Use the SSS Salary Loan Calculator

To preview your monthly installment and number of months even before applying, you can use the official
👉 SSS Salary Loan Calculator

It automatically shows:

Your estimated loan amount
Number of months or installments
Your monthly amortization

This helps you plan ahead so you won’t be surprised by your deductions.

📈 Loan Term Details and Computation Rules

Let’s break down how SSS computes and displays your loan term in your disclosure.

1️⃣ Interest Rate

8% per annum, based on diminishing balance.
You only pay interest on your remaining balance each month — not the original loan.

2️⃣ Loan Term

12 months for 1-year loan
24 months for 2-year loan

3️⃣ Service Charge

1% of approved amount, deducted upon release.

4️⃣ Pro-Rated Interest (Before Amortization Starts)

Interest is charged upfront from the approval date up to the end of the next month.

Example:

Loan approved: March 12
Coverage: March 12–April 30 (50 days)
8% annual interest × ₱20,000 × (50 ÷ 365) = ₱219.18

This ₱219.18 appears in your disclosure as a deduction before your first payment.

5️⃣ Monthly Amortization Start

Repayment begins on the 2nd month after approval.
If approved in March → first deduction starts in May.
That’s why your disclosure will show “Start of Amortization: May 2025”.

⚠️ Common Questions About Loan Installments

When Does the First Payment Start?

Your first installment is due on the second month after approval.
For example: Approved March 12 → first payment in May.

Can I Pay Early?

Yes! You can pay in advance or settle in full anytime without penalty.

What If I Miss an Installment?

SSS charges 1% penalty per month on the unpaid amortization amount.

Can I Renew My Loan Before It’s Fully Paid?

Yes, once half of the loan term is paid (e.g., 12 months out of 24).
Your remaining balance will be deducted from your new loan proceeds.

🧮 Example: Full 2-Year Payment Breakdown

Month	Beginning Balance	Monthly Payment	Interest (8%)	Principal	Ending Balance
1	₱20,000	₱950	₱133	₱817	₱19,183
12	₱11,000	₱950	₱73	₱877	₱10,123
24	₱900	₱950	₱6	₱944	₱0

By the end of 24 months, your total repayment equals your principal + interest as stated in the disclosure.

🧾 Why the Number of Installments Matters

Knowing your total number of months helps you:

Budget your salary deductions properly.
Avoid late penalties.
Plan when you can reapply for a new loan.
Verify if your employer is remitting your payments correctly.

Your disclosure statement clearly lists the “Term: 12 months” or “Term: 24 months” line — check this for confirmation.

🧠 Smart Tips for SSS Borrowers

✅ Check your posted contributions — these determine whether you get a 12- or 24-month term.
✅ Always review your disclosure statement before confirming the loan.
✅ Compute first using the SSS Salary Loan Calculator.
✅ Plan repayments to avoid penalties.
✅ Track deductions on your payslip monthly.

📘 TL;DR (Summary)

The SSS Salary Loan disclosure shows your repayment term:
- 12 months for 1-year loans
- 24 months for 2-year loans
Amortization starts 2 months after approval.
Each installment includes both principal + interest (8% per year).
You can pay early with no penalty or renew after half the term.
Always use the official SSS Salary Loan Calculator before applying.

❓ Frequently Asked Questions (FAQs)

1. How many months will I pay for my SSS Salary Loan?
It’s either 12 months or 24 months, depending on your contribution record.

2. When does payment start?
Usually on the second month after loan approval.

3. What happens if I miss a payment?
SSS will charge a 1% monthly penalty on the unpaid amortization.

4. Can I pay my SSS loan earlier than scheduled?
Yes! You can pay early or in full anytime without any additional charge.

5. How can I know my monthly amortization and term before applying?
Use the SSS Salary Loan Calculator to compute your estimate.

💬 Final Thoughts

Your SSS Salary Loan Disclosure Statement is more than just paperwork — it’s your full payment guide.
It tells you exactly how many months you’ll be paying, how much each installment is, and when repayment starts.

By reading it carefully, you’ll avoid confusion and stay on top of your SSS obligations.

Before applying, always check your eligibility, compute your amortization using the
👉 SSS Salary Loan Calculator,
and plan your budget accordingly.

Knowing your installment term is the first step to borrowing smart and paying stress-free.

How Many Months or Installments Are Stated in the SSS Salary Loan Disclosure Statement?