SSS Salary Loan Terms and Conditions (2025 Complete Guide)
If you’re short on funds and need help with bills, tuition, or baby expenses, the SSS Salary Loan is one of the easiest and most affordable loan options available to Filipino workers. Unlike private loans with high interest, SSS offers a fixed 8% annual interest rate — making it a practical choice for members looking for short-term financial relief.
This guide will walk you through everything you need to know about the SSS Salary Loan terms and conditions, including who can apply, how much you can borrow, how interest is computed, repayment rules, and important reminders before applying.
What Is an SSS Salary Loan?
The SSS Salary Loan is a cash loan offered to currently employed, self-employed, or voluntary members of the Social Security System (SSS). It is designed to help cover short-term financial needs such as education, medical expenses, home repair, or family emergencies.
Unlike calamity or housing loans, this one is purely based on your Monthly Salary Credit (MSC) and your posted contributions.
Who Can Apply for an SSS Salary Loan?
To qualify, you must meet the following conditions:
For 1-Year Loan:
- You must have at least 36 posted contributions.
- At least 6 contributions must be within the last 12 months before applying.
- You must be currently employed or self-employed.
- You must have no outstanding or delinquent SSS loans.
For 2-Year Loan:
- You must have at least 72 posted contributions.
- At least 6 contributions must be within the last 12 months before applying.
- You must be currently active with contributions.
- You must have no existing loan in default.
✅ Tip: Always check your contribution record in your My.SSS account before applying to ensure your eligibility.
How Much Can You Borrow?
The loan amount depends on your Average Monthly Salary Credit (AMSC) — the average of your last 12 months of salary credits.
| Type of Loan | Basis | Maximum Amount |
|---|---|---|
| 1-Year Loan | 1 month of AMSC | Up to ₱25,000 |
| 2-Year Loan | 2 months of AMSC | Up to ₱50,000 |
💡 Even if your computed amount exceeds the limit, SSS caps the maximum at ₱25,000 or ₱50,000 respectively.
The minimum loanable amount is ₱1,000 regardless of your salary level.
Interest Rate and Other Deductions
1. Interest Rate:
SSS charges 8% per year, computed on a diminishing principal balance.
This means that as you pay monthly amortizations, the interest is recalculated based on your remaining balance — so you pay less over time.
2. Service Charge:
A 1% service fee is automatically deducted from the loan proceeds before release.
Example: For a ₱20,000 loan, ₱200 will be deducted, and you’ll receive ₱19,800.
3. Pro-Rated Interest:
If your loan is approved mid-month, SSS charges interest from approval date up to the end of the following month before the first amortization begins.
Example:
If your loan is approved on March 20, you’ll pay interest for March 20–31 + April.
This ensures that the next payment cycle (usually May) is properly aligned.
Repayment Terms and Schedule
1-Year Loan
- Payable in 12 equal monthly installments.
- Starts on the second month following loan approval.
2-Year Loan
- Payable in 24 equal monthly installments.
- Also starts on the second month after approval.
If you are employed, your employer automatically deducts the monthly amortization from your salary and remits it to SSS.
If you are self-employed or voluntary, you must pay directly through accredited payment channels or your My.SSS account.
Loan Payment Example
Example:
You applied for a ₱20,000 loan approved on March 20.
- Term: 24 months
- Interest: 8% per annum
- Service Fee: ₱200 (1%)
- Pro-Rated Interest: ₱120 (approx. for 1.5 months)
Computation:
- Net proceeds = ₱20,000 − ₱200 − ₱120 = ₱19,680
- Monthly amortization = ₱904.17 (approx.)
If you pay earlier or in full, no penalty applies — and you’ll save on future interest.
Penalties and Default Rules
- Late Payment Penalty: 1% per month of unpaid amortization.
- Default Policy: If you miss several payments, your loan may be deducted from future SSS benefits such as maternity, sickness, or retirement.
- Loan Renewal Rule: You can apply for a new loan once you’ve paid at least 50% of the principal and at least 12 months have passed since your last approval.
If you availed of penalty condonation in the last 5 years, note that your renewal may carry 10% interest instead of 8%.
How to Apply for an SSS Salary Loan (Step-by-Step)
Step 1: Log in to your My.SSS account
Visit www.sss.gov.ph and click “Member Login.”
Step 2: Go to “E-Services” → “Apply for Salary Loan”
Choose your loan type (1-year or 2-year) and verify your employer information.
Step 3: Choose your disbursement account
Select your enrolled bank account or UMID-ATM card for loan proceeds.
Step 4: Review and submit your application
SSS will send an email confirmation once submitted.
Step 5: Wait for employer approval (if applicable)
If employed, your employer must certify your application online within a few days.
Step 6: Loan release
Once approved, your loan is credited directly to your registered bank account — usually within 3–7 working days.
When to Expect Deductions or First Payment
The first deduction happens on the second month after loan approval.
Example:
If your loan is approved in March, your first payment will be due in May, covering the interest accrued for March–April (the pro-rated period).
Using the SSS Salary Loan Calculator
To know exactly how much you can borrow and what your monthly amortization will be, try the
👉 SSS Salary Loan Calculator
It lets you:
- Compute your possible loan amount based on your contributions
- View your monthly amortization and interest
- Understand how the 8% annual interest affects your total payment
This helps you plan your budget before applying.
Common Questions and Mistakes to Avoid
Common Mistakes:
❌ Submitting an application with incomplete contribution records
❌ Using an inactive or mismatched bank account
❌ Expecting cash release (SSS only releases through bank or UMID-ATM)
❌ Ignoring pro-rated interest deductions
✅ Always double-check your contributions and bank details before filing.
TL;DR (Summary)
- Interest Rate: 8% per annum
- Loan Term: 12 months (1-year loan) or 24 months (2-year loan)
- Service Fee: 1% deducted upfront
- Pro-Rated Interest: Covers the period before first payment
- Eligibility: 36 or 72 contributions, 6 in the last 12 months
- Maximum Loan: ₱25,000 (1-year), ₱50,000 (2-year)
- Penalty for Late Payment: 1% per month
- Early Payment: No penalty
FAQs About SSS Salary Loan Terms and Conditions
1. Can I apply for an SSS Salary Loan while on maternity leave?
Yes. As long as you meet the contribution and employment requirements, you can apply even if you’re on maternity leave.
2. How long does SSS process a salary loan?
Usually 3–7 working days after employer certification and bank verification.
3. Can I renew my salary loan early?
Yes, once you’ve paid at least 50% of the principal and 12 months have passed since your last loan approval.
4. How do I know if my employer remitted my payments?
Log in to your My.SSS account and check your Loan Info → Payment History.
5. What happens if I resign or lose my job?
You remain responsible for paying the remaining balance directly to SSS. Failure to pay may result in deductions from future benefits.
Final Thoughts
The SSS Salary Loan remains one of the most affordable credit options for members, offering low interest, flexible repayment, and easy application.
If you’re planning to apply, make sure your contributions are updated and verified before submitting your request.
To know exactly how much you can borrow, use the SSS Salary Loan Calculator and plan your next move wisely.
