Guide on SSS Salary Loan Features & Application
SSS SALARY LOAN – Seafarers who are members of the Social Security System may turn to the loan offer for financial solutions.
In the Philippines, millions of Filipinos are members of the SSS or the Social Security System. A membership to the state-run social insurance institution is mandated among the employees of businesses and companies in the private sector.
The SSS has also opened its membership for the self-employed individuals, overseas Filipino workers (OFWs), and individuals who want to make a voluntary membership to the state entity. Thus, a lot of seafarers are also members of the state-run social insurance institution.
The SSS got loan offers for its members. One of the loans is the Salary Loan which seafarers may turn to for extra funds. Here are the loanable amounts under the offer:
- “one-month salary loan is equivalent to the average of the member-borrower’s latest posted 12 Monthly Salary Credits (MSCs), or amount applied for, whichever is lower”
- “two-month salary loan is equivalent to twice the average of the member-borrower’s latest posted 12 MSCs, rounded to the next higher monthly salary credit, or amount applied for, whichever is lower”
What sets the SSS Salary Loan different from the other seafarer loans is that it its maximum loan repayment is fixed at 24 monthly installments despite of the job contract of the borrower. The interest rate is set at 10% per annum based on a diminishing principal balance. It will apply until the loan is fully-paid.
In applying for the loan, it is best to know that the Social Security System charges a service fee of 1%. It will be deducted from the loan proceeds. In applying for the offer, there are SSS Salary Loan requirements that must be submitted to the state entity.
The SSS Salary Loan is also open for renewal. Renewing the loan is allowed by the social insurance giant after the payment of at least 50% of the original principal amount of the existing loan and at least 50% of the term has lapsed.
In case of renewal, the oustanding balance of the existing loan will be deducted from the proceeds of the new loan. The payments may be made through a tellering facility, an SSS-authorized payment center, or an SSS-accredited bank.
Aside from the SSS Salary Loan offer, seafarers who want to apply for a multi-purpose cash loan may also turn to the AUB Seafarer’s Loan.
