SSS Loan Application Will Be Rejected Due to the Following Reason(s)
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SSS Loan Application Will Be Rejected Due to the Following Reason(s)
Imagine this: You’ve been excitedly waiting to apply for an SSS Salary Loan. You log in to your My.SSS account, fill out all the details, and click submit—only to see the dreaded message:
“Your loan application will be rejected due to the following reason(s).”
Frustrating, right?
This error means something in your record or eligibility status is preventing your loan from being processed. For SSS members—especially employees, self-employed, voluntary members, and OFWs—understanding these reasons can save you time, effort, and the heartbreak of rejection. In this guide, we’ll go through all the possible reasons for rejection, how to fix them, and what you can do next.
Common Reasons Why SSS Loan Applications Get Rejected
1. Insufficient Contributions Requirement: You must have at least 36 posted monthly contributions for a 1-month loan, or 72 posted monthly contributions for a 2-month loan. Example: If you’ve been unemployed for a year and stopped paying contributions, you might not meet the minimum. Solution: Continue paying contributions until you meet the eligibility.
Emergency Loan Example: You still have an unpaid balance from a previous loan in 2019. Solution: Pay off or settle any outstanding balance before reapplying.
3. Employer Not Remitting Contributions Requirement: Your most recent contributions should be posted and updated. Example: Your employer deducted SSS contributions from your salary but hasn’t remitted them yet. Solution: Coordinate with your HR or employer to update your records.
4. No Posted Contributions in the Last 6 Months Requirement: You must have at least 6 posted contributions in the last 12 months before your loan application. Example: OFWs or voluntary members sometimes forget to pay regularly. Solution: Make sure your payments are up to date before applying.
5. SSS Disqualifications You are already granted final benefits (e.g., retirement, total disability). You committed SSS fraud or falsification. You resigned from employment and have not shifted to voluntary/OFW membership.
6. Incorrect or Incomplete Personal Information Mismatch in name, date of birth, or address between your My.SSS account and actual records. Missing contact details or bank information. Solution: Update your records via the E-Services section or visit an SSS branch.
7. Bank Disqualification If your bank account is closed, mismatched with your name, or not PESONet-accredited, your application may be denied. Solution: Update your bank details under the Disbursement Account Enrollment Module (DAEM).
8. No Eligible Disbursement Account Requirement: You must have an approved and active bank account enrolled in DAEM. Example: You applied for a loan but have no bank account listed in your SSS profile. Solution: Enroll your bank account first via My.SSS before reapplying.
9. Bank Account Not Approved in DAEM Requirement: Bank details must be reviewed and approved by SSS before loan release. Example: You submitted your bank account in DAEM, but it’s still marked as “Pending Approval.” Solution: Wait for SSS confirmation or update any incorrect details.
10. Using a Non-PESONet Bank Requirement: Loan proceeds can only be credited to PESONet-participating banks. Example: You’re using a rural bank account not linked to PESONet. Solution: Open a PESONet-accredited account and update your DAEM record.
11. Duplicate Loan Application Requirement: Only one active loan application is allowed at a time. Example: You submitted a loan request yesterday and tried applying again today. Solution: Wait until your first application is processed or cancelled.
12. Loan Type Not Available for Your Membership Requirement: Some loan types are restricted for certain member categories. Example: Household helpers may be ineligible for specific loan programs. Solution: Apply only for loan types allowed for your membership classification.
13. Pending Change in Membership Status Requirement: Your records must show your current and correct membership type. Example: You shifted from employed to voluntary but the system still lists you as employed. Solution: Request SSS to update your membership status before applying.
14. Active Sanction or Suspension Requirement: You must not be under any SSS administrative sanction. Example: You were penalized for false reporting of contributions. Solution: Wait until your sanction period ends before reapplying.
15. No Available Loan Program in Your Area Requirement: Loan availability may vary based on region or local SSS programs. Example: Your branch may temporarily stop processing certain loans. Solution: Check with your local SSS office or online portal for updates.
16. Net Loan Proceeds Less Than PHP 1,000 Requirement: After deductions (such as unpaid balances), the releaseable amount must be at least PHP 1,000. Example: You applied for a PHP 5,000 loan but had PHP 4,500 in deductions. Solution: Apply for a higher loan amount or settle outstanding balances first.
17. Mismatch in Bank Account Name Requirement: Bank account name must exactly match your SSS registered name. Example: Your bank account uses your maiden name while SSS records show your married name. Solution: Update either your SSS record or your bank account name for consistency.
18. Bank Account is Dormant or Closed Requirement: Your bank account must be active to receive loan disbursement. Example: You haven’t used your account for years and the bank closed it. Solution: Open a new account and update your DAEM record.
19. Invalid Bank Account Details Requirement: Bank account number and details must be correct. Example: You entered an extra digit in your account number. Solution: Double-check and correct your bank details in DAEM.
20. Pending Benefit or Claim Application Requirement: No active claim application should overlap with your loan application. Example: You have a pending unemployment benefit claim. Solution: Wait for your benefit claim to be processed before applying for a loan.
21. Multiple Active Loans in Conflict Requirement: Certain loans cannot be taken together. Example: You already have an active calamity loan and salary loan rules prevent overlap. Solution: Finish repayment or check SSS guidelines before applying.
22. Ineligible Membership Category Requirement: Only qualified members may apply for salary loans. Example: A non-working spouse without sufficient contributions is not eligible. Solution: Pay the required contributions and meet eligibility criteria before applying.
How to Avoid SSS Loan Application Rejection
Regularly check your contribution status online.
Update your bank details before applying.
Pay any outstanding loans.
Keep personal records accurate and consistent.
Apply during off-peak hours to avoid system errors.
Use the SSS Salary Loan Calculator Before Applying
Before you even apply, it’s smart to check how much you can borrow. This prevents disappointment if you discover you’re not eligible for the amount you expected.
This helps you prepare better—especially if you need to catch up on contributions to qualify for the amount you want.
TL;DR (Too Long; Didn’t Read)
SSS loan applications can be rejected due to insufficient contributions, unpaid loans, missing records, bank issues, or incorrect personal information.
Always check and update your records before applying.
