SSS Loan Application Will Be Rejected Due to the Following Reason(s): Bank Account is Dormant or Closed
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SSS Loan Application Will Be Rejected Due to the Following Reason(s): Bank Account is Dormant or Closed
You’re excited — your SSS Salary Loan got approved, and you’re just waiting for the funds to be credited to your bank account. Then, you receive the dreaded message:
“Bank Account is Dormant or Closed.”
Sayang, right? This is actually a common and preventable problem for SSS members. If your bank account is inactive or closed, SSS cannot release your loan proceeds. Understanding why this happens — and how to fix it — will save you from weeks (or even months) of delay.
Why This Matters to SSS Members
Since SSS now uses PESONet-accredited banks to transfer loan proceeds via the Disbursement Account Enrollment Module (DAEM), your registered bank account must be active and able to receive funds. If your account is dormant (inactive for months) or closed, your loan will be rejected to prevent failed transactions and lost funds.
Potential Causes of a Dormant or Closed Bank Account
1. Inactivity for a Long Period
Most banks mark an account as dormant after 6–12 months without deposits or withdrawals.
2. Bank-Initiated Closure
Banks may close accounts with zero balance for a set period.
3. Account Closure by the Owner
You may have forgotten that you requested closure months ago.
4. Failed DAEM Enrollment Verification
If SSS detects that your account is inactive during the validation process, it will automatically reject the application.
Example Scenario
Ana applied for an SSS salary loan. She enrolled her old payroll account from her previous employer in DAEM. That account hadn’t been used for over a year, so the bank had already tagged it as dormant. When SSS tried to credit her loan, the transaction failed — resulting in a rejection notice.
How to Solve It
Step 1: Check Your Bank Account Status
Visit your bank branch or call customer service to confirm if the account is active.
Step 2: Reactivate the Account (if possible)
Some banks allow reactivation after updating personal details and making a deposit.
Step 3: Use a Different Active Account
If reactivation isn’t possible, open a new account and enroll it in SSS DAEM.
Step 4: Update Your Bank Details in My.SSS
Log in to your My.SSS account.
Go to E-Services → Disbursement Account Enrollment Module (DAEM).
Add your new bank account and submit required documents (e.g., ATM card, deposit slip, or bank certificate).
What You Can Do Yourself
Regularly use your bank account to keep it active (even small transactions help).
Keep a minimal balance to avoid automatic closure.
Always update your bank details in SSS if you change accounts.
Avoid using accounts tied to old employers if you’re no longer with them.
If You Still Can’t Fix It After Multiple Attempts
Ask your bank for a Bank Certification stating the account is active.
Visit your SSS branch to have your loan manually reprocessed after updating bank details.
Plan Your Loan Ahead of Time
Before applying, it’s wise to check how much you can actually borrow using the SSS Salary Loan Calculator. This helps you decide if it’s worth fixing your account issues now or later.
TL;DR (Too Long; Didn’t Read)
Loan rejected because your bank account is dormant or closed. âś… Keep your account active with regular transactions. âś… Update SSS DAEM with an active bank account. âś… Reactivate or open a new account if needed.
FAQs
1. How long before a bank account becomes dormant? Most banks consider an account dormant after 6–12 months of no activity.
2. Can SSS deposit my loan into a closed account? No, the transaction will fail, and your loan will be rejected.
3. Can I use a payroll account from my old employer? Yes, but only if it’s still active and under your name.
4. How do I enroll a new bank account in SSS DAEM? Log in to My.SSS → E-Services → DAEM → add account details and submit proof.
5. Can I use an e-wallet instead of a bank account? Yes, if the e-wallet is supported by SSS DAEM and registered under your full legal name.
