What Is the Total Amount I Need to Repay According to the SSS Salary Loan Disclosure Statement?
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What Is the Total Amount I Need to Repay According to the SSS Salary Loan Disclosure Statement?
Ever wondered why the amount credited to your SSS salary loan is less than what you applied for? That’s because the SSS Salary Loan Disclosure Statement includes several deductions — and also shows the exact total amount you need to repay.
If you’re an SSS member planning to apply or have just received your loan, understanding this disclosure is important. It ensures you know what you’re paying for, how much interest applies, and when repayment starts.
In this guide, we’ll break down everything — from loan computation, repayment amount, pro-rated interest, and example scenarios — so you can fully understand your SSS Salary Loan disclosure.
🏦 What Is an SSS Salary Loan?
An SSS Salary Loan is a cash loan granted to active SSS members to help them cover short-term financial needs. It’s one of the most accessible government loans in the Philippines, and it’s based on your monthly salary credit (MSC) — the average of your recent contributions.
This means: ✅ The more you contribute, the higher your possible loan amount. ✅ The more consistent your payments, the faster your approval.
The loan comes with an 8% annual interest rate based on a diminishing balance, which makes it fairer than flat-rate interest systems.
📄 What Is the SSS Salary Loan Disclosure Statement?
When your SSS loan is approved, you’ll receive a Salary Loan Disclosure Statement — a legal document required under the Truth in Lending Act.
It shows all the financial details of your loan:
Approved loan amount
Service fee deduction (1%)
Pro-rated interest (charged upfront)
Net proceeds (the actual amount credited to your account)
Total amount to repay
Monthly amortization schedule
This statement is your loan blueprint. Every number on it matters — especially the Total Amount Payable, which combines your principal, interest, and any applicable charges.
💸 How the SSS Salary Loan Works
Before we go deeper into the repayment breakdown, let’s look at how your loan is computed.
Term
Interest Rate
Loan Term
Service Charge
Repayment Mode
1-year loan
8% per annum
12 months
1% of loan
Salary deduction
2-year loan
8% per annum
24 months
1% of loan
Salary deduction
Your employer automatically deducts your monthly amortization and remits it to SSS. If you’re self-employed or voluntary, you can pay it directly via SSS online payment channels.
📊 How to Compute Your SSS Salary Loan
To estimate your total repayment amount, you can use the official SSS Salary Loan Calculator. It helps you understand:
How much you can borrow
Monthly amortization
Total amount payable
Let’s go through an example using SSS computation rules.
💡 Example: 2-Year Salary Loan
Scenario: You applied for a ₱20,000 loan on March 12, 2025.
Step 1: Compute the 1% Service Charge
₱20,000 × 1% = ₱200 (deducted upfront)
Step 2: Compute Pro-Rated Interest (8% annual)
SSS charges interest from March 12 to April 30 (50 days).
Annual interest = 8% × ₱20,000 = ₱1,600
Daily interest = ₱1,600 ÷ 365 = ₱4.38
Pro-rated = ₱4.38 × 50 = ₱219.18
Step 3: Net Proceeds
₱20,000 − ₱200 − ₱219.18 = ₱19,580.82 credited to your bank account
Step 4: Total Amount to Repay
You still owe the full ₱20,000 principal + interest spread over 24 months.
✅ Total repayment: ₱21,600 ✅ Interest paid over term: ₱1,600 ✅ Loan credited: ₱19,580.82
📘 Breakdown of What Appears on Your SSS Loan Disclosure
Section
Description
Principal Amount
The total amount you borrowed
Service Fee (1%)
Deducted upfront before release
Pro-Rated Interest
Advance interest from approval to next month
Net Proceeds
What you actually receive in your bank
Interest Rate
Fixed 8% per year based on diminishing balance
Term
12 or 24 months
Monthly Amortization
Amount deducted monthly from your salary
Total Payable Amount
The full amount you will repay, including interest
This transparency helps you know what every peso goes to.
📆 When Does Repayment Start?
Amortization starts on the second month after your loan approval date.
Example:
Loan approved on March 12 → amortization starts May.
April is covered by your pro-rated interest.
If you are employed, your company automatically deducts this monthly. If separated, you must continue paying directly to SSS.
⚖️ Why the Total Repayment Is Higher Than the Loaned Amount
This is because of three main components:
Interest (8% per annum) – charged on a reducing balance.
Pro-rated interest – deducted before the loan is released.
Service charge (1%) – deducted upfront once only.
These ensure the loan remains sustainable for SSS while maintaining low interest for members.
🔍 Understanding Pro-Rated Interest
This is one of the most confusing parts of the disclosure — but it’s actually simple. It covers the time between your loan approval date and the start of your first amortization.
Example:
Loan approval: March 12 Amortization begins: May Interest charged: March 12–April 30
So even before your first payment, SSS collects a small interest upfront for fairness — you’re already benefiting from the loan funds during this period.
📉 Late Payments and Penalties
If you miss a payment, SSS charges 1% penalty per month on the overdue amount.
Avoid this by:
Ensuring your employer remits payments on time.
Paying directly if you change jobs or become voluntary.
If you default for several months, your future benefits (like maternity or retirement) may be offset to cover your balance.
🔁 Can You Renew or Reapply for Another SSS Loan?
Yes — but only if:
You have paid at least half of your current loan term (e.g., 12 months for a 24-month loan).
You don’t have any overdue balance.
When renewed, your remaining balance will be deducted from the new loan proceeds.
If you availed of penalty condonation in the past five years, the new loan may have a 10% interest rate.
💡 Tips Before Taking an SSS Salary Loan
Check your posted contributions – You must have at least 36 (for 1-year) or 72 (for 2-year) contributions.
Ensure your employment status is active.
Plan your cash flow – Know how much will be deducted monthly.
Avoid multiple loans – Focus on completing one loan before applying again.
📘 TL;DR (Summary)
The total repayment amount includes principal + interest + small deductions.
SSS charges 8% interest per year and 1% service fee.
A pro-rated interest is deducted upfront before release.
You can repay in 12 or 24 months via salary deduction.
Use the official SSS Salary Loan Calculator to know your monthly payments before applying.
❓ Frequently Asked Questions (FAQs)
1. What does “Total Amount Payable” mean on my SSS disclosure? It’s the full amount you must repay — principal + interest — spread across 12 or 24 months.
2. Why is my loan credited amount smaller than what I applied for? Because SSS deducts a 1% service charge and pro-rated interest upfront.
3. Can I pay off my loan early? Yes, you can pay in advance or in full anytime with no penalty.
4. What happens if I miss payments? SSS adds a 1% monthly penalty to overdue amortizations.
5. Can I apply for another loan while one is active? Only if you’ve paid at least half of the current loan term and have no delinquency.
💬 Final Thoughts
The SSS Salary Loan Disclosure Statement isn’t just paperwork — it’s your financial guide. By understanding every item in it, you can manage your loan smartly, avoid hidden costs, and plan your repayments confidently.
Before applying, always check your eligibility and loan estimate using the 👉 SSS Salary Loan Calculator.
Knowing the total amount you’ll repay empowers you to borrow responsibly and stay debt-free faster.
