SSS Salary Loan Interest Rate Is Not As Low As You Think

Updated 2012:  

Finally, the SSS improved its salary loan program! Go to our article on the improved SSS salary loan program.


January 23, 2011:

The SSS salary loan interest rate is not as cheap as we think.

It’s important that we remember this so we don’t take our SSS loan lightly, and so that we don’t borrow just to buy things we don’t really need.

In my previous workplace, some of my co-workers borrow money from the SSS thinking the loan is a pure benefit. They spend it all to celebrate their birthdays or to buy fancy gadgets/appliances.

At first glance, the 10 percent annual interest rate is low, that it’s not even 1 percent a month. But if you actually compute the total cost of the SSS loan, the total interest taken from the borrower is higher than 10 percent.  And there’s still the 1 percent service fee to be considered.

Why? It’s because SSS does not give you the total amount of your loan, as posted in the Loan Amount box. SSS deducts immediately the total interests for the first 12 months.

For example, pag ang loan amount mo ay 20,000 pesos payable in 2 years, SSS doesn’t give you the whole 20,000. It deducts the first-year interest and the one-percent service fee, so you get only about 18,228 pesos. In reality, the total interest you pay would be nearly 4,000 pesos.

I-compare natin sa Credit-to-Cash loan ng BPI Classic Card. (I use BPI as an example, but there are others with similar or lower rates.)  If you borrow 20,000 pesos, you really get 20,000 pesos, and the total interest you would pay for 24 months is about 3,840 pesos.

What I’m really trying to say is:

Although the SSS salary loan interest rate is lower than many others such as pawnshop rates and other bank personal loan rates, hindi pa rin siya ganong kababa.

So, we should not take SSS loans lightly, thinking that they’re super low-cost loans.  We should use them for very important things.

Related Article:   Low Interest Personal Loans in the Philippines


Add a Comment
  1. Sir, please help., I just want to know how much must be my salary loan’s interest and penalty as of now. I had my salary loan with these details:
    Check Amount : 18,690.00
    Loan Amount : 21,000.00
    Loan Month : 2
    Monthly Amortization : 918.75
    First Monthly Amortization : 04-2009
    unfortunately, there was this typhoon Milenyo., the company told us that we can ask the SSS through letter to postpone the start of our monthly amortization by 6 months without penalty.
    in other words, i just did what the company told us…but due to personal reasons, i resigned from the company and i left my sss loan without paying.
    It was only last april 2013 that i started the repayment of my sss loan…please sir, I hope you could help me..thank you in advance and more power!

  2. Hi jennifer, I wished you were able to take advantage of the penalty condonation program offered by SSS last year. You can continue paying any amount you’re able to pay, and then hope for another penalty condonation program next year, so the penalties will be reduced. Have you enrolled in My.SSS? So you can track your payments. Do your best to pay your loan so your pension will not be severely reduced or wiped out. More power to you too.

  3. hello idea po ba kau kung kelan uli ung penalty condonation program nila?mtagal nrin kc ung loan ng asawa ko na hindi nabayaran kc nwalan cya ng trabaho nun.

  4. Hi letlet, sorry, no idea, but we hope there’s another one next year. Email SSS requesting for another condonation program — to add to other letters requesting the same, so SSS might be persuaded. Meanwhile, start saving for payments or making some payments.

  5. Inquiry about my SSS salary loan, since I renew my salary loan in my previous company and some of circumstances i was able to resign,my problem is how can I pay my monthly amortization to pay my loan with my new employer.thanks

  6. Hi Larry, submit your SSS loan voucher to your new employee so they’ll know how much to deduct. If you lost it, enroll in online SSS so you can check your records and print your loan balance. Submit this printout to your HR and tell them your monthly amortization amount.

  7. Hello, I got a loan from SSS. My first payment should have been August but i wasn’t able to pay it. How much interest should I pay on 6,000.00 and monthly amortization of 252.62? Thanks. God Bless.

  8. Hi irish, the penalty is 1% per month, so .01 x 252.62 = 2.5262. So when you pay this Oct, pay 3 x 252.62 plus maybe 8 pesos. Don’t worry about paying more — any excess will be deducted from your principal loan.

  9. Hi, may i ask, i have an outstanding loan with sss. last payment is November 2012. i moved to another company. any idea how much the penalty is? also,since i had it fixed by my company,is it possible to renew my loan? thanks

  10. Hi christian, previously, SSS required loan applicants not to have delinquent loans. I’m not sure if that’s still a requirement. But these days, their main requirements are 2: you have paid at least half of your loan and 1 year has passed since date of loan check. After updating your payments, check your loan eligibility at (I hope the site will be already fully functioning when you check). Penalty is 1% of amount due for the month. Every penalty is added to the current due and then to the next due, with the total again charged with penalty, and so on (cumulative).

  11. How much is the interest of my loan, which i have not paid for 16 months. 371.87 is my monthly deduction. Thanks

  12. Hi popoi, the penalty for past due is 1% per month. I used 2 online calculators and the total penalty is either 476.78 or 435.87. The final total amount depends on the formula being used by SSS.

  13. gud am dis is che from taytay doctors maternity. i have some problem in saving doc on usb of are sss loan contribution of are employee, can u email me manual how to process posting and saving sss loan contribution in usb thank you for your immediate action on this matter che tdmh

  14. Hi che, sorry I’m not very familiar with LMS, but I’ve read that after saving your new loan file, you locate your new loan file in the folder where you installed your LMS program. Look for a .txt file with ___1411.txt (year and month). After finding the file, send it to your USB or copy it to your USB. Will send you the manual after I find it

  15. Hi Ms, when will the sss post the penalty in salary loan payment? this January is the start of my amortization, but I was absorbed from agency to direct. I was absorbed January 16, that’s why the agency told me they no longer deducted for sss loan payment. Will they post my penalty by February?

  16. Hi Jaype, request your direct employer to deduct your full Jan amortizations this Jan 31 payroll. Submit a copy of your SSS loan check voucher. A penalty might appear on your online account, but this will be removed once your direct employer submits its loan collection list for the Jan-to-Mar quarter in April

  17. It means Ms that my pay on feb 15, i’ll ask for deduction for my full amortization? then on feb 28 full deduction also for the month of february to fill the gap? thanks

  18. Hi Jaype, is it written in your voucher that your start of amortization is Jan 2015? Meaning your loan check was dated Nov 2014? And do you mean your first pay with your new employer is on Feb 15? If so, then yes, ask for deduction for your full Jan amortization, and on Feb 28, your full Feb amortization. By your last pay in March, you should have been deducted 3 monthly amortizations, so that your employer can report 3 paid amortizations in April. But of course, ask your new HR.

  19. Thanks Ms. for confirmation, employer also remit payment on salary loan every quarterly same as on the contribution?

  20. Hi Jaype, employers are required to remit employees’ loan payments and contribution payments monthly (or or before the __th day of the following month depending on the 10th digit of the employer’s SSS no.). Collection list is filed every quarter (this is the reason loan and contribution payments are posted on members’ online accounts only after the quarter)

  21. Which means Maam I will see my penalty on the first quarter since I didn’t pay my first amortization scheduled this January?

  22. Ms. If I decided to pay my loan on my behalf not through my employer, I can pay quarterly without penalty?

  23. How much will be my sss salary loan which I did not pay since march 2010?? My original loan is 20 k. I sm an Ofe, I want to pay my loan here in Riyadh,saudi there authorized bank here to pay my sss salary loan??

  24. Hi Ms. Nora, I availed of an SSS loan last 09/2009 and 3 monthly amortization was made thru my company. Payment was not made after that since I resigned. Then last 09/2012 I availed of the SSS loan condonation program under situation 2. I was approved and paid the total amount indicated in full before the required due date of 09/30/2012. I was not able to check it until last Sept 2014 and found out that the payment I made was not posted. After several visit to SSS, they finally posted the payment last 01/2015 but upon checking, there is still amount due with penalty and interest. Is it supposed to be 0 since I paid the amount they computed when i availed the condonation?

  25. Hi Rain716, yes, you’re right, because you paid the correct amount in full before due date. You can write a letter to SSS requesting them to remove the penalties and interests imposed on your loan dated __ because you paid in full before due date __ the amount __ computed when you applied for loan condonation on __. Attach a copy of your loan condonation application and your payment receipt. Xerox these docs and have them stamped-received by SSS.

  26. Hi Ms.Nora, may i know how does the Company compute the remaining balance to pay to SSS.Last Nov.2013 my amount of loan is 18,000.00.from January 2014-April 2015 i paid it at amount of 830.61 monthly amortization.Now, i will resign and i don’t know exactly the remaining balance to pay to SSS which is the company deduct it to my Last Pay. My own version of computation is Jan.2014-April2015 (16months) at 830.61 monthly. (830.61 X 16 = 13,289.76) My amount of Loan is 18,000.00 – 13,289.76 = 4,710.24. Is it correct or not?Thanks and GODspeed.

  27. Hi Mae, you’re partly correct. But not all of the 830.61 that you paid monthly was deducted from the principal loan of 18k. You also paid monthly for interest. SSS now uses the diminishing balance formula. I used an online diminishing balance calculator, and your balance after 16 months of payments should be 6,395. I’ll get back to give you a link to a sample computation later on. If you have time, you can visit SSS and ask for a computation of your loan balance (present your list of payments and payment dates).

  28. I have unpaid loan in sss since 2005. I was told that I need to get a voucher from sss way back 2007 when I transferred from another employer which I was not able to do since sss systems are always down whenever I try to visit. I was not able to get a voucher then and I believe that my loan has gained a lot of interests. What will I do?

  29. Hi Shiela, commit to pay off your loan, as this will be deducted from final benefits. You can visit the nearest SSS branch with your ID and ask for your loan balance. Or you can register online (midnight or dawn) so you can see your data and loan balance. You can pay any amount from month to month until you pay off your loan. Of course, the bigger monthly payment, the better.

  30. Hi Ms. Nora! I just wanted to know what should be the total amount I should pay for my SSS Salary Loan. My total loan amount was 13.5k on 2012. The first monthly amortization should begin on 4/2012 but I went abroad and was just able to start paying my loan on December 2013. As of now, I was able to pay more than 10k to my loan. I just want to know how much should I still need to pay for my loan. TIA!

  31. Hi Jackie, you can email and ask for the amount of your balance. Include your complete name, SSS no., date of birth, loan amount and date and estimated payments. You can also try registering online at, but you should have a recent transaction no. (receipt for a recent contribution payment), and you must register at non-peak time (dawn hours), as most of the time now, the SSS website is too busy.

  32. Hi Nora, Im Chito,i think i got big problem on my loan,its was way back 1997 for only 3k loan amount.because of some circumtances,my company before had paid only once.i check it online and it blew to 16,438.i know its my fault, but can you give me a suggestion.can you give me info on when the condonation will be available.thanks so much and God Bless.

  33. Hi Chito, sorry I don’t know when the next loan penalty condonation will be, as these programs are decided by top SSS officials. If you’re still young, you can probably wait, but if you’re nearing retirement age, I think you should start paying it off. And even if you decide to wait, I suggest you make some payments, as the last condonation program required at least 3 monthly payments to qualify for condonation.

  34. Hi Mam,
    Please help me kasi hindi ko alam bkt hnd pa ako eligible mag renew ng loan eh base naman po sa total amount of payments ko half na (50%) nabayaran ko.Bale eto po details

    Loan Amount : 14,500
    Monthly Amortization : 669.10
    First Monthly Amortization : December 2013

    Kasi po nag MartenityLeave po ako ,so 5 months po na hnd nkabayad ng Monthly Amortization (from August to December 2014) Pero nung January 2015 up to the present updated na po bayad base on the record nung chineck ko thru on line Total Payment ko na is 9,367.40 which is kung ideduct ko po ung (669.10 x 24 = 16,058.4 – 9,367.40 = 6,691 na lang po dapat ung balance ko.Magkano po ba ung interest sa 5 mos na hnd ako nkabayad during my Maternity Leave.kasi base sa record ang babayaran ko pa 7,834.23.bakit parang ang laki naman po ata ng interest ang alam ko 1% per month lang.Pa help naman po.saka nka 14 monthly amortization ko which means pde na sna ako magrenew ng loan.hindi ko lang kasi makuha panu computation.

  35. Hi Julie Ann, your balance is still more than 50% of the loan amount, so you’re not yet eligible. Pay maybe one more amortization to be eligible for renewal. About your balance, there’s interest (0.833%) and penalty (1%) for late payments. Check also if all your payments have already been posted, as employers file the collection list quarterly, not monthly.

  36. Hi Mrs Nora, how do we compute the penalty for sss loan? our employer will pay the penalty because they were delayed in payment. I’m in Hr. What should we do? there are almost 110 employees. Our employer is willing to pay. We just need the formula. Is it 1% every month of the amortization? I hope you can help us. Thanks a lot

  37. Hi Cheenee, yes the penalty is 1% of the amortization due per month, specifically, total amount of loan collection list for the month x 1%. I just don’t know if SSS computes cumulatively, or just simple penalty computation and multiplication by no. of months, in case of delayed payments for several months. I think what is usually done is for you to bring your unpaid loan collection lists and ask the SSS teller (of your company’s SSS branch) to compute and sign.

  38. Hi jeff, add your last 12 posted average monthly salary credits and divide by 12. That will be your loan amount. For example, if your last 12 posted contributions were all 1,650 (545 employee share, 1,105 employer share), your average salary credit will be 15,000. Your loan amount will most likely be 15,000 pesos.

  39. Good day Ms. Nora, Ask ko lang po? My monthly Amortization is 1,153.62 but unfortunately di ko agad nabayaran? how much po ang interest start ng April 2015 until June 2015?.Hoping for your immediate response.Thaks!

  40. Hi Ms. Nora, Recently I went to SSS to ask for my Loan balance, then I paid immediately about 4k to have it updated up to september coz the one at SSS told me the balance will increase the day after. I paid through bayad center which took about 3 days to post, and then now it was posted and there’s an 85php overdue interest, which is for me I should not have to pay. Is that correct? It should no longer have an overdue interest and they should acknowledge the date when I paid. Thanks for your advice.

  41. Hi Raissa, yes, your actual date of payment should be the date considered in the computation of the interest and penalty. But I suggest that for this last amount, you go to SSS and ask for your balance, and then pay at the SSS cashier the balance immediately after, the same day. Then later on, write SSS a letter of complaint about your payments. The reason for this is that it’s better to overpay your loan for a little amount at the moment (to bring your balance to zero or negative) rather than let the penalty and interest accumulate while you complain. SSS can refund, if it sees its error later on. We experienced this years before — it was so stressful and wasteful going back twice and complaining without any result, as the 90 pesos balance increased, so finally, we just paid the 121 pesos we believed we did not owe.

  42. Hi Ms.Nora how much is the penalty if since july 2015-sep.2015 I have not paid? 507.59 po is my monthly amortization. I have a new employer po and I don’t want them to deduct from july-aug.2015. I prefer paying it myself at SSS so as not to confuse my employer. thanks in advance po. God bless.

  43. Hi Jermane, penalty is 1% of amount due per month. Pay 507.59 x 2 = 1015.18 plus penalty of 1% of amount due (about 11 pesos). If you like exact amount, you pay at SSS, fill up the RS5 form and ask the cashier to compute the penalty.

  44. so my new employer can deduct the month of sept. as im going to pay the july-aug. amort. and penalty direct to SSS. im just waiting my back pay po so i can pay the july-aug. amort. is that allowed? skip july-aug. payments because it could be next month I’ll be able to pay. my employer will start deducting for the month of sept. is that possible po Ms.Nora thank you again for the answers. Godbless you more. :)

  45. Hi Jermane, yes, I think so. SSS now uses the diminishing principal balance formula for interests and penalties, so it will still be okay if you miss the payments, as long as you pay them asap when you have the cash. God bless you too!

  46. may loan asawa ko loan amount 7000. amortization,306.25 noong last dec. 2011

    last check namin april 2015
    total obligation-6033.61

    naghulog po unang company nya ng 306.25 for 6 month. feb-jun2012. total of- 1837.50
    ung company nya ngaun nag huhulog ng 598.72 for 11 moth base sa bibigay nilang copy of report. mula april2014-april2015. total of 6585.92
    KUNG Pagsasamahin ung hulog aabot ng 8423.42

    tanong ko lng po.
    pano po makukuha ung subrang bayad if ever?
    isa pa pong problem d po kc d update ung pag pasa nila ng report sa sss. parang itong april lng nila na confirm na ksama asawa ko sa nahuhulogan nila monthly. pano po kya namin malalaman kung clear na sya. at pwd na sya ulit mag loan.

  47. Last 2005 I loaned, I was able to pay only 3500.00 then I stopped payment for some personal reason. In 2010 I resigned to care for my child who has cerebral palsy. I wish to pay my delinguent loan, Can I avail of condonation to reduce the interest. Will there be another condonation? I want to settle my problem.

  48. Hi Antonina, sorry I don’t know when they’ll launch another condonation program. Even the SSS officers answering questions on the SSS Facebook page say they don’t know. I hope you can save fast so you can pay off your loan. Take care and may God give you more strength and resources.

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