Based on the official website of the Social Security System, under the SSS Salary Loan, an applicant may be eligible to apply for a one-month salary loan or a two-month salary loan.
The one-month salary loan is equivalent to an average monthly salary of the applicant based on the latest posted wage credits. It is open for members who have paid at least 36 monthly contributions.
To be eligible for the two-month salary loan, a member should have paid at least 72 monthly contributions to the social insurance institution.
According to SSS, the interest rate charges under the salary loan offer is at 10% per annum. It can be paid for up to 24 monthly amortizations. The deductions from the loan includes the 1% of the loan proceeds as a service fee.
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When can you renew your Salary Loan?
With regards to the possibility of renewing your loan, you may renew your SSS member loan after reaching at least half or 50% of the term. Also, a 50% payment of the original amount is required in the renewal.
So for example, you have a Salary Loan of Php20,000 that is payable within 24 months (2 years). You can renew your loan once you have paid a total of Php10,000 and after the 12th month from your previous loan’s approval.
Based on the post on SSS , in renewing an SSS member loan, the balance on the previous loan is deducted and the proceeds should be any amount higher than zero.
Source: SSS Website
