Why Is the Net Amount I’ll Receive Lower Than the Approved SSS Salary Loan Amount?
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Why Is the Net Amount I’ll Receive Lower Than the Approved SSS Salary Loan Amount?
Many SSS members get surprised when their approved loan is ₱20,000 — but only around ₱19,500 or less is credited to their account. If this happened to you, don’t worry — it’s normal and part of SSS’ standard loan process.
In this article, we’ll explain why your net amount is lower, what deductions are made before release, and how to compute the actual amount you’ll receive.
🏦 Quick Overview: How the SSS Salary Loan Works
The SSS Salary Loan is a short-term cash loan designed to help employed, self-employed, and voluntary members cover urgent needs like tuition, bills, or maternity expenses.
SSS offers two loan types:
1-year loan: Up to one (1) month of your Average Monthly Salary Credit (AMSC)
2-year loan: Up to two (2) months of your AMSC
The loan amount is computed based on your latest 12 months of salary credits, and your contributions must be updated.
So, even if you are approved for ₱20,000, what you’ll actually receive in cash is slightly lower — because of standard deductions.
📉 Why Is the Net Loan Amount Lower Than the Approved Amount?
The SSS does not release the full approved loan amount because of mandatory deductions applied before the money is credited to your account. These include:
1. 💼 Service Charge – 1% of Approved Loan
This is a one-time processing fee automatically deducted from your loan.
Example: If your approved loan is ₱20,000 → ₱20,000 × 1% = ₱200 service fee
So, ₱200 is automatically deducted before release.
2. 📅 Pro-Rated Interest – Based on Approval Date
This is the most common reason why your net amount is lower than expected.
When your loan is approved, SSS charges interest upfront for the period from the approval date up to the end of the following month — even before your first monthly amortization starts.
Example Calculation:
If your ₱20,000 loan is approved on March 12, 2025, SSS computes the interest from March 12 to March 31 (20 days) and for the entire month of April (30 days) — a total of 50 days.
Let’s compute:
Annual Interest: 8% of ₱20,000 = ₱1,600/year
Daily Interest: ₱1,600 ÷ 365 = ₱4.38/day
Pro-rated Interest: ₱4.38 × 50 = ₱219.18
✅ Result: ₱219.18 is deducted upfront before you receive your loan.
3. 🧾 Outstanding Balance or Loan Offsets (if any)
If you still have an existing unpaid balance from a previous SSS loan (salary, calamity, or emergency), the SSS automatically deducts that from your new loan proceeds.
This ensures you don’t have overlapping unpaid loans before getting another one.
🧮 Summary of Deductions
Deduction Type
Rate / Basis
Example on ₱20,000
Service Fee
1%
₱200.00
Pro-rated Interest
50 days @ 8%/year
₱219.18
Other Offsets (if any)
Depends on prior loans
₱0.00 (if none)
TOTAL DEDUCTIONS
₱419.18
NET AMOUNT RELEASED
₱19,580.82
So while your approved loan is ₱20,000, you’ll only receive around ₱19,580.82 after standard deductions.
🧩 Understanding the Loan Computation and Deductions
Let’s go deeper into how SSS determines your loanable amount and why deductions vary slightly among members.
🔹 Step 1: Check Your Average Monthly Salary Credit (AMSC)
Your AMSC is based on the average of your last 12 posted salary credits. This determines how much you can borrow.
1-year loan: Up to 1 × AMSC
2-year loan: Up to 2 × AMSC
Example: If your AMSC is ₱10,000 →
You may borrow ₱10,000 (1-year loan)
Or ₱20,000 (2-year loan)
🔹 Step 2: Apply the 8% Interest per Year
The 8% annual interest is computed on a diminishing principal balance, meaning you only pay interest on the remaining unpaid amount each month.
Your monthly amortization covers both principal + interest.
🔹 Step 3: Deduct the 1% Service Fee and Pro-rated Interest
This happens before your loan is credited to your account.
Your Loan Disclosure Statement shows exactly how much was deducted and the Annual Percentage Rate (APR), which reflects your total yearly cost after deductions.
🧮 Try the Online Calculator to See Your Actual Loan Amount
This helps you plan how much you’ll actually receive and budget your salary deductions accurately.
🕒 When Will I Receive the Loan?
After approval, the net loan proceeds are credited to your UMID-ATM or enrolled bank account within 3–5 working days. The actual amount deposited is after all deductions, as shown in your disclosure statement.
⚖️ Does the Deduction Mean I’m Losing Money?
Not at all. These deductions are standard loan costs that ensure:
Fair interest computation (based on actual days)
Proper loan administration
Compliance with SSS regulations
Think of it as paying for convenience and transparency — you see exactly how your loan is computed.
💡 Tip: How to Maximize Your SSS Salary Loan
Here are a few practical ways to make the most out of your loan:
Apply early in the month. → This reduces the number of days charged for pro-rated interest.
Check your contribution status regularly. → Make sure you have the required 36 or 72 contributions depending on your loan type.
Avoid loan overlap. → Settle existing SSS loans first before reapplying to avoid offsets.
Use the calculator before applying. → So you can plan ahead and know your take-home amount.
🩷 TL;DR (Summary)
If your SSS Salary Loan says ₱20,000 but you only got around ₱19,580, don’t panic — that’s correct. The difference comes from:
1% service fee
Pro-rated interest (approval month + next month)
Possible old loan offsets
These deductions are normal and clearly shown in your Loan Disclosure Statement.
❓ FAQs About SSS Loan Deductions and Net Amount
1. Why didn’t I receive the full approved loan amount? Because SSS deducts a 1% service fee, pro-rated interest, and any unpaid previous loans before crediting the amount.
2. How do I know the exact deductions? Check your SSS Salary Loan Disclosure Statement under “Deductions.” It lists every amount subtracted before release.
3. What is pro-rated interest? It’s the interest covering the approval date up to the end of the following month, deducted before your first amortization starts.
4. Can I reduce the deductions? No, these are fixed by SSS policy. However, applying earlier in the month may slightly reduce your pro-rated interest days.
5. Why does the net amount vary from my co-worker’s loan? Because approval dates and loan types differ, leading to different pro-rated interest and service fee amounts.
✨ Final Thoughts
The net loan amount you receive from your SSS Salary Loan may be lower than what’s approved — but it’s not a loss. It simply means SSS has deducted the required fees upfront to keep your loan transparent and compliant with regulations.
Remember:
Approved Amount ≠ Cash You Receive (because of 1% service charge + pro-rated interest)
Always review your Loan Disclosure Statement before signing — it’s your best guide to understanding where every peso goes.
And if you want to see your estimated take-home amount instantly, try the 🔗 SSS Salary Loan Calculator before you apply.
