How Much Is Sss Salary Loan Interest In The Philippines?

Employees and self-employed citizens in the Philippines are eligible to receive an SSS salary loan. This can be a beneficial way to fix your financial issues and finally get rid of debt, at least in some way.
However, before you apply for this type of loan, you should understand the essential requirement, as well as terms and conditions. Usually, people are concerned about the interest rate because it determines how affordable your loan is.

Therefore, in this article, we are going to explain a couple of things and help you go through this process as smoothly as possible.


If you wish to apply for an SSS loan, then you must make at least 36 monthly contributions for a one-month loan, and 72 monthly dues for a two-month loan. In both cases, six-monthly contributions must be made in the last six months.

Make sure with your employer that all the contributions are up to date, to avoid unnecessary delays. You need to be at least 21-year-old, but not older than 65. Additionally, you must have a clear record and free of any fraudulent activities committed against SSS.

How can you apply?

First of all, you should fill out the application form and submit the application with the Government and employee issued IDs.

Alternatively, you can apply through the SSS online page. The final loan amount will depend on how many monthly dues you’ve made since opening the account.

However, in most cases, you will be able to get two-month salary loan, which can be payable in 24 monthly installments. The loan will be deducted through your pay. Depending on your case, you might have to provide additional paperwork.

Interest rate

The interest rate usually depends on the lender. But, in most cases, the borrower will be charged an interest rate of 10% on an annual level. In this case, we are talking about fixed interest rates, which you continue to pay until you fully pay off your loan. On top of that, you will be charged with a 1% loan processing fee.

If you miss any payments or you are late with your monthly installments, then you will be charged with a 1% penalty. You can also renew your SSS loan, but you have to pay at 50% of the initial loan. However, in this case, you won’t have to pay additional fees, only the interest rate.

On the other hand, there are lenders who offer variable interest rates, which might be lower than a fixed one. But, in this case, you are risking a lot.

For example, the interest can increase in the following months and leaves you in bigger debt than you initially hoped to repay.

For that reason, make sure to review everything carefully before you make a final decision. After all, you fail to make the right choice; then, you may have to pay a much larger interest until your loan is repaid.