Details about the SSS Housing Loan Loanable Amounts for Members
SSS HOUSING LOAN LOANABLE AMOUNTS – Here is a guide on how much a member may borrow under the Housing Loan offer of the Social Security System.
If you are a member of the Social Security System, you may be qualified to apply for the Housing Loan offer. It is an excellent option that you can turn to for financing in the purposes of house repair or home improvement.
The said Housing Loan offer can cater to both minor and major house repairs and improvements. Under it, you can fulfill a project and just pay for it in light monthly installments depending on your chosen term.
How much you may borrow under the Housing Loan offer of the Social Security System? According to the state-run social insurance agency, a qualified member may borrow up to P1 million.
However, the SSS Housing Loan loanable amount is actually dependent on certain factors. The state-run social insurance agency will consider the following in deciding for the amount to lend to the member:
The maximum loanable amount is P1,000,000.00.
- Appraised value of collateral of at least 70% but not to exceed 90%
- Borrower’s capacity to pay
- Actual need of the borrower based on the contract to sell/scope of work and bill of materials evaluated by the SSS
With regards to the interest rate, the Social Security System implements a 9% interest rate per annum. For SSS members except the overseas Filipino workers (OFWs), the loan is payable for up to 20 years in multiples of five (5) years.
OFW borrowers are allowed a maximum of 15 years of repayment. The state-run social insurance agency also made the repricing clear.
According to SSS, Housing loans with a payment term of not beyond 15 years will bear a fixed interest rate. Those loans with a payment term beyond 15 years shall bear a fixed interest rate during the first 15 years of the loan term only. Afterwards, they will be subject to interest re-pricing every five years.
The Social Security System considers the age of the borrower in determining the maximum lonable amount. The member-borrower should not exceed 65 years old at the time of the loan maturity.