Why Is My Loan Amount in the SSS Voucher Smaller Than What I Applied For?

Have you ever felt disappointed after checking your SSS loan voucher, only to see that the amount released was smaller than what you applied for? You’re not alone.

Many SSS members are surprised when their approved loan amount doesn’t match the actual amount they receive, known as the net proceeds. But don’t worry — this doesn’t mean SSS made a mistake.

In this article, we’ll explain in simple terms why your loan amount is smaller, what the deductions mean, and how you can check the exact computation using the official SSS Salary Loan Calculator.

🏦 Quick Recap: How the SSS Salary Loan Works

The SSS Salary Loan is a short-term cash assistance program for employed, self-employed, and voluntary members who have paid enough contributions.

The amount you can borrow is based on your Average Monthly Salary Credit (AMSC) and the number of posted contributions.

You can borrow:

One-month loan – up to one month of your AMSC (max ₱25,000)
Two-month loan – up to twice your AMSC (max ₱50,000)

Repayment is through salary deductions or voluntary payments spread over 12 or 24 months.

📉 Why Your SSS Loan Amount Is Smaller Than What You Applied For

When you apply for ₱20,000 but only receive ₱19,500 or ₱19,600 in your SSS loan voucher, that’s not an error — it’s because SSS automatically deducts standard charges before releasing the loan.

Let’s break it down 👇

Common Deductions:

🧾 Service Charge – 1% of your approved loan
💸 Pro-rated Interest – charged upfront for the period between your approval date and the start of your amortization
🔁 Outstanding Balance – if you still have an unpaid or existing loan

Your net proceeds (the final amount released to your bank or check) are calculated as:

Net Proceeds = Approved Loan – (Service Charge + Pro-rated Interest + Outstanding Balance)

🧮 Real Example: How SSS Calculates Your Net Proceeds

Let’s say your loan is approved at ₱20,000 on March 12, 2025 for a 2-year loan term (24 months).

Step 1. Compute Service Charge

1% × ₱20,000 = ₱200

Step 2. Compute Pro-rated Interest

SSS charges 8% per year (diminishing balance).
They charge upfront for days before your first monthly amortization.

Coverage = March 12–31 (20 days) + full April (30 days) = 50 days
Annual interest = ₱20,000 × 8% = ₱1,600
Daily interest = ₱1,600 ÷ 365 = ₱4.38
Pro-rated interest = ₱4.38 × 50 = ₱219

Step 3. Deduct Total

₱20,000 – ₱200 (service charge) – ₱219 (interest) =
✅ ₱19,581 (net proceeds)

So even if your approved amount was ₱20,000, the actual credited amount will be ₱19,581.

💡 Why Does SSS Deduct Pro-rated Interest?

This is one of the most misunderstood parts of the SSS Salary Loan.

The pro-rated interest ensures fairness — instead of charging you a full month’s interest immediately, SSS only charges for the days covered before your first amortization.

So if your loan is approved mid-month, you only pay for those days plus the next full month.

📘 Example:
If your loan is approved on March 12, your first amortization starts in May.
The interest for March 12 to April 30 (50 days) is charged upfront — not extra interest, just an advance portion.

📊 Sample Deduction Table

Description	Computation	Amount (₱)
Approved Loan	—	20,000
Service Charge	1% × 20,000	200
Pro-rated Interest	50 days × ₱4.38	219
Net Proceeds	20,000 – 419	19,581

🧾 Other Reasons Why Your SSS Loan Amount Is Smaller

Sometimes the reason isn’t just deductions — it could also be eligibility or past records.

1. You Have an Existing or Unpaid Loan

If you had a previous salary loan or calamity loan not yet fully paid, SSS will automatically offset the remaining balance from your new loan.

2. You’re Applying for a 1-Month Loan Only

If you have fewer than 72 contributions, you’re only eligible for a 1-month salary loan, even if you applied for a 2-month one.

3. Your Average Monthly Salary Credit (AMSC) Is Lower

SSS bases your loan on your latest 12 months of salary credits, not your current salary. If your earlier contributions were lower, your AMSC — and therefore your maximum loan — is lower too.

4. Service Charge and Interest Deductions

All SSS loans include the 1% service fee and 8% annual interest, which reduce your take-home amount upfront.

🔍 How to Check the Full Breakdown in Your Voucher

You can easily view all details online:

Log in to your My.SSS account
Click “Inquiry” → “Loans Info” → “Salary Loan”
Open your Loan Voucher
Check the Approved Loan Amount and Net Proceeds
Review any listed deductions

This will show you exactly where the difference comes from.

⚙️ Compute It Yourself Using the SSS Salary Loan Calculator

Before applying, you can use the official SSS Salary Loan Calculator to see your estimated loanable amount, deductions, and take-home proceeds.

It automatically considers:

Your AMSC
Number of contributions
Loan type (1-month or 2-month)
Deductions and interest

👉 Tip: Try adjusting your contribution months in the calculator to see how it affects your eligible loan amount.

📋 Quick Reference: SSS Salary Loan Rules and Computations

Term	1-Year Loan	2-Year Loan
Required Contributions	36 posted (6 within last 12 months)	72 posted (6 within last 12 months)
Maximum Loan	1 month of AMSC (up to ₱25,000)	2 months of AMSC (up to ₱50,000)
Interest Rate	8% per annum	8% per annum
Service Charge	1% upfront	1% upfront
Loan Term	12 months	24 months
Payment	Salary deduction / voluntary	Salary deduction / voluntary

🧠 Example: When You Expected ₱25,000 but Got ₱24,300

Let’s say your employer certified your loan for ₱25,000.

Service Charge (1%): ₱250
Pro-rated Interest (50 days): ₱274
Outstanding Balance (old loan): ₱176

Computation: ₱25,000 – ₱700 = ₱24,300 released

This explains why the credited amount is smaller than what you applied for.

💬 TL;DR Summary

If your SSS loan amount is smaller than what you applied for, it’s because of automatic deductions like the 1% service charge, pro-rated interest, and possibly unpaid previous loans.

👉 Always check your Loan Voucher or use the SSS Salary Loan Calculator to know your actual take-home proceeds before applying.

❓ FAQs About Smaller SSS Loan Amounts

1. Why is the amount in my SSS voucher lower than my approved loan?

Because of automatic deductions like the service charge, pro-rated interest, and any unpaid loan balance.

2. Can SSS make a mistake in deductions?

Rarely. But if you believe there’s an error, visit your nearest SSS branch or contact their hotline to verify.

3. Can I get the full amount I applied for?

No, all SSS loans have standard deductions. What you receive is your net proceeds, not the gross loan amount.

4. Does pro-rated interest mean I’m paying extra?

No. It’s part of your total loan interest — just charged earlier to cover the period before regular amortization.

5. Can I use the SSS Salary Loan Calculator to check deductions?

Yes! Use the SSS Salary Loan Calculator to estimate your net proceeds and see how deductions affect your take-home amount.

🏁 Final Thoughts

Seeing a smaller amount than expected in your SSS loan voucher can be surprising — but once you understand the computation, it makes sense.

Every peso deducted is part of standard SSS policy, ensuring fair and transparent lending.

Before applying, always use the SSS Salary Loan Calculator to get a clear idea of what you’ll actually receive.

That way, you can plan your budget accurately and enjoy the full benefit of your SSS Salary Loan with confidence.

Why Is My Loan Amount in the SSS Voucher Smaller Than What I Applied For?