THE Social Security System’s (SSS) salary loan program is one of the most popular SSS programs among members. Over a million actively paying members avail themselves of this loan every year to address their short-term financial needs.
To be eligible to borrow under the program, a member must be currently employed, currently contributing self-employed or voluntary member. If employed, the employer must be updated in the payment of contributions. The member-borrower has not been granted final benefits, i.e., total permanent disability, and retirement. He or she must be under 65 years of age at the time of application and has not been disqualified due to fraud committed against the SSS.
A member is qualified to a one-month loan if he or she has contributed at least 36 monthly contributions and a two-month loan if he or she has paid at least 72 monthly contributions. In both instances, at least six of the contributions should be within the last 12 months prior to the filing of application.
A one-month salary loan is equivalent to the average of the member’s latest posted 12 monthly salary credits, or amount applied for, whichever is lower. The two-month salary loan is equivalent to twice the average of the member’s 12 monthly salary credits, rounded to the next higher monthly salary credit, or amount applied for, whichever is lower.
The loan is payable within two years in 24 monthly installments, with an interest of 10 percent per year based on diminishing balance. A service fee of 1 percent of the loan amount will be charged and deducted from the loan proceeds.
To apply for a salary loan, an employed member goes through his or her employer either by filling out a form or through the SSS online facility (in this case, both employee and employer must be registered). Self-employed and voluntary members may file directly through the SSS branch nearest them.
Here’s a piece of good news! Members can now opt to receive their salary-loan proceeds through electronic cards instead of checks. Early this year the SSS announced the availability of the SSS-Citibank cash card in which a member’s salary loan will be credited if he or she opts for it. The use of electronic cards provides members with greater ease, convenience and efficiency compared to check payments.
Yesterday, SSS announced the launching of the SSS-UnionBank Quick Card, an automated teller machine (ATM) card linked to a member’s personal UnionBank savings account that would be opened as part of the SSS salary-loan application. Quick Cards will be issued to members free of charge on the same day as the salary-loan approval. Members can withdraw their salary-loan proceeds from any Bancnet, Expressnet and Megalink ATMs, as well as use their SSS-UnionBank Quick Cards for over-the-counter and online purchases at Visa-affiliated merchants, similar to a debit card.
This salary-loan electronic facility is initially available at the SSS Diliman, Makati-Gil Puyat and Pasig-Shaw branches.
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For more information about the Social Security System (SSS) and its programs, call our 24-hour call center at (632) 920-6446 to 55, Monday to Friday, or send an e-mail to member_relations@sss.gov.ph.
Susie G. Bugante is the vice president for public affairs and special events of the SSS. Send comments about this column to susiebugante.bmirror@gmail.com.