What Does the “Amount Financed” Mean in the SSS Salary Loan Disclosure Statement?

When you apply for an SSS Salary Loan, one of the most confusing parts of the SSS Salary Loan Disclosure Statement is the line that says “Amount Financed.” Many members wonder — is this the same as the loan amount I applied for? or why is it smaller than what I expected?

If you’re asking the same question, don’t worry — this guide will explain everything clearly and simply. By the end of this article, you’ll understand what “Amount Financed” means, how it’s computed, and what deductions affect the final amount you receive.

🧾 What Is an SSS Salary Loan?

The SSS Salary Loan is a short-term cash loan offered to qualified members of the Social Security System (SSS) in the Philippines. It helps cover short-term financial needs — like bills, school expenses, or emergencies — and is repaid through monthly salary deductions.

This loan is based on your Average Monthly Salary Credit (AMSC) and can be availed as:

1-month loan – up to one month’s worth of AMSC
2-month loan – up to two times your AMSC

💡 What Does “Amount Financed” Mean?

The “Amount Financed” in your SSS Salary Loan Disclosure Statement refers to the actual amount credited to you after all applicable deductions are made from your approved loan amount.

In other words:

Amount Financed = Approved Loan Amount − Deductions

It’s the net cash you will actually receive in your bank account or through your UMID card.

🔍 Common Deductions That Affect the Amount Financed

Let’s look at what SSS usually deducts before releasing your loan:

Deduction Type	Description	Example Amount
Service Charge	1% of the approved loan amount	₱200 on a ₱20,000 loan
Pro-rated Interest	Interest charged for the days between loan approval and the start of regular amortization	Around ₱200+ depending on date
Outstanding Balance	If you still have an unpaid loan balance, SSS deducts it from your new loan	Example: ₱500 from an old balance
Penalty or Condoned Amounts	If you had a restructured or condoned loan in the past, it may be offset	Varies per member

So, if your approved loan amount is ₱20,000, but after all deductions you receive ₱19,500 — that ₱19,500 is your “Amount Financed.”

🧮 Example Calculation of “Amount Financed”

Let’s break down a sample computation step by step:

Item	Amount (₱)	Explanation
Approved Loan Amount	20,000.00	Based on 2-month AMSC
Less: Service Charge (1%)	200.00	₱20,000 × 1%
Less: Pro-rated Interest	219.18	Interest from approval to start of repayment
Less: Old Loan Balance	500.00	Example deduction for previous balance
= Amount Financed	₱19,080.82	Net cash credited to you

So your loan voucher will show ₱19,080.82 as the amount financed — that’s what will be sent to your bank.

⚙️ How Is Pro-Rated Interest Computed?

To understand your deductions better, here’s how pro-rated interest works:

It’s the interest SSS charges from the date your loan is approved up to the end of the following month — before your regular monthly payments begin.

For example:

Loan approved: March 12, 2025
Coverage: March 12–31 (20 days) + full April (30 days) = 50 days
Interest rate: 8% per year
Computation:
- ₱20,000 × 8% = ₱1,600 (annual interest)
- ₱1,600 ÷ 365 = ₱4.38 per day
- ₱4.38 × 50 days = ₱219.18

That ₱219.18 is deducted upfront before your loan is released — it’s part of why the “amount financed” is smaller.

🧮 Try the SSS Salary Loan Calculator

Before applying, you can estimate your loan amount, deductions, and net proceeds using the
👉 SSS Salary Loan Calculator

This tool helps you:

Compute how much cash you’ll actually receive after deductions
See your estimated monthly amortization
Understand how the amount financed affects your repayment

(No login needed — quick and easy to use!)

🧍 Who Can Apply for an SSS Salary Loan?

You’re eligible if you meet the following requirements:

Type of Loan	Contribution Requirements	Employment Status
1-month loan	At least 36 posted contributions, 6 within the last 12 months	Must be currently employed
2-month loan	At least 72 posted contributions, 6 within the last 12 months	Must be currently employed
All borrowers	Must have no existing overdue SSS loan	Must have updated employer remittances

💸 How Loan Repayment Works

Term: 24 months for 2-month loans (12 months for 1-month loans)
Interest: 8% per year (based on diminishing balance)
Payment: Automatically deducted from your salary
Penalty: 1% per month if late
Early Payment: Allowed anytime without penalty

Your first payment usually starts two months after loan release.

⚠️ Common Issues Members Face

1. “My amount financed is lower than my loan!”

✅ That’s normal — it already includes deductions for service charge, old balances, and interest.

2. “I didn’t receive my full ₱20,000.”

SSS automatically deducts your unpaid balance or penalty before crediting your loan.

3. “Why does the statement say I owe the full ₱20,000 even if I only got ₱19,000?”

The repayment schedule is always based on the approved loan amount, not the amount financed.

💡 TL;DR (Summary)

Amount Financed = the net amount you receive after deductions
Deductions include 1% service charge, pro-rated interest, and any old balances
Your repayment is based on the approved loan, not the net proceeds
You can estimate your cash-out and payments using the SSS Salary Loan Calculator

🧠 FAQs

1. What is the difference between “Approved Loan Amount” and “Amount Financed”?

The approved amount is what SSS grants you; the amount financed is what you’ll actually receive after deductions.

2. Does the amount financed mean my loan is already approved?

Yes — if it appears in your Loan Disclosure Statement, your loan has already been approved and is being processed for release.

3. Why is the amount financed lower than my loan?

Because SSS deducts service fees, interest, and previous balances before crediting the amount.

4. Can I increase my amount financed?

Only indirectly — by having no unpaid balances and applying closer to your AMSC maximum.

5. How can I check my amount financed online?

You can log in to your My.SSS account, check your Salary Loan Application, and open your Disclosure Statement PDF.

✅ In short:
The “Amount Financed” shows the real cash value of your SSS Salary Loan after all deductions — so if it’s lower than your approved amount, don’t worry. It’s perfectly normal and part of how SSS ensures fair and transparent loan releases.

What Does the “Amount Financed” Mean in the SSS Salary Loan Disclosure Statement?