In today’s society, everyone is racing against time. Sometimes, we don’t even have time to stop and take stock of the opportunities and mistakes that have happened. The wheel of fate is fierce. Sometimes you don’t have a penny in your wallet, maybe because you haven’t received your salary or because you spend too much, etc. Understanding that, UpFinance has been providing Filipinos with SSS Salary Loan to help you realize this urgent need.
Are you in need of a loan? Do you want a loan based on your salary? Are you wondering what the advantages and disadvantages of borrowing money through SSS Salary Loans are? Let UpFinance help you better understand this form of a loan through this article.
What is an SSS Salary Loan in the Philippines?
An SSS Salary Loan is a cash loan through the Social Security System granted to anyone who is currently receiving an employment salary in the Philippines. The program is created to meet the short-term credit needs of its members. An SSS Salary Loan disbursement is based on how many months you have contributed to the SSS Salary Loan program as a member. After 36 months of contribution, you will be eligible for a loan that is the equivalent of a full month of your salary at work.
A lot of people in the Philippines these days are favoring the SSS Salary Loan method due to many of its advantages, bringing a lot of conveniences to customers:
- A simple SSS Salary Loan application is all you need. In addition to basic documents such as ID card, household registration book/driver’s license, customers only need to prepare a Payroll/Pay slip/Bank account statement for the last three months.
- The disbursement limit of these salary-based loans is quite high. It is calculated based on the amount of money you have contributed as a member as well as your monthly salary. The 1-month SSS salary loan will be your average Monthly Credit for the past 12 months. On the other hand, the 2-month SSS loan is equivalent to two times the average of your last 12 Monthly Salary Credits.
- Fast loan approval time from 3-5 days with low supported interest rates, which is 10% per annum based on diminishing principal balance.
What is the Interest Rate for SSS Salary Loans?
Through the Social Security System’s loan program, you can receive a supported 10% per annum based on a diminishing principal balance. You will have an outstanding balance to pay off, and you will be charged continuously every month until it is fully paid.
If you fail to pay your loan and it defaults, the amount you have not paid will be deducted from other benefits that you may claim as a member (if you are a self-employed and/or a voluntary member of the program, your short-term benefits in the program will be deducted, which are your sickness, maternity, and partial disability pays.)
How to Apply for an SSS Salary Loan in the Philippines?
Before applying for an SSS Salary Loan application, you need to understand who can apply for this loan. As long as you are a member who has paid 36 monthly installments and have paid six months of the last 12 months, you are eligible for a 1-month SSS salary loan. Furthermore, to get approved for a 2-month SSS Salary Loan, you must have paid 72 monthly installments and have paid six months of the last 12 months as well. You can apply for SSS Salary loans for any financial purposes, such as repairing your car, renovating your home, buying household appliances, paying for your child’s education, going on a vacation with the family, and many more. However, most people in the Philippines currently look to SSS Salary loans as a means to meet their family’s needs during the COVID-19 pandemic.
Anyway, you can apply for your loan at an SSS branch near your home. However, if you don’t want to go outside for your own safety, you can apply for a salary loan online using the My.SSS portal.
- Register for an account on My.SSS and use it to log into the page. Next, click E-Services.
- Click Apply for Salary Loan. You will see the amount of money you are eligible to loan displayed on the screen. Of course, you can borrow an amount lower than the displayed amount if you want to.
- After your SSS salary loan application has been approved, you’ll receive the loan proceeds through PESONet banks, E-Wallet, Remittance Transfer Companies (RTC), or Cash Payout Outlets (CPO) accredited by the SSS for the Disbursement Account Enrollment Module or DAEM, based on which method you selected.
Get an SSS Salary Loan on UpFinance
The UpFinance website is your one-stop service that currently serves all customers in the Philippines by curating and advising our customers on the latest loan offers. With UpFinance, you can compare a variety of financial products, including deposits, credit cards, and all kinds of loans (including collateral and unsecured loans alike). On the UpFinance website, you can simply use your Calculator to find the loans that suit you the most, using criteria on the sliders such as type of loan, type of credit company, loan amount, and loan period.
UpFinance teams up with partners across the Philippines to bring our customers the best loan deals, thanks to discounts as well as quicker application processes. We partner up with popular companies such as Digido, Robocash, Online Loans Pilipinas, Kviku, Money Cat, and many others from different aspects of the finance industries. You can find banks, cooperatives, insurance companies, investment companies, online payday loan providers, P2P platforms, and even Pawnshops through UpFinance, which always have deals up and ready for you to grab. Moreover, you can find links to these partners’ mobile applications right on the UpFinance website.
All of UpFinance partners have had years of experience in the legal field, with extensive knowledge and a library of necessary documents that can speed up getting the cash you need to your wallet. At the same time, UpFinance’s support team is full of enthusiastic experts who are always eager to provide you with the best advice and recommendations depending on your needs at the time.
All in all, UpFinance is a great portal for you to look into if you are looking to file an SSS Salary Loan Application, as you will have an easier time working with companies who can help you out with the process.
Author Maria Torres from Upfinance.