Understanding the SSS 2nd Salary Loan: How Much Can You Borrow and Eligibility Requirements
nts: Who Can Apply for an SSS 2nd Salary Loan?
To qualify for an SSS 2nd salary loan, members must meet the following eligibility requirements:
- At least 36 monthly contributions, with six contributions within the last 12 months before the application.
- The first salary loan must be fully paid or have at least 50% of the principal amount paid and at least 50% of the loan term elapsed.
- The member must be under 65 years old at the time of application.
- The member must not be a delinquent borrower or have any unpaid loans with the SSS.
Loanable Amount: How Much Can You Borrow on an SSS 2nd Salary Loan?
The loanable amount for an SSS 2nd salary loan depends on the member’s total number of monthly contributions and their average monthly salary credit (AMSC) for the last 12 months. Here’s how the loanable amount is calculated:
- Members with 36 to 71 posted monthly contributions can borrow up to one month of their AMSC.
- Members with at least 72 posted monthly contributions can borrow up to two months of their AMSC.
The maximum loanable amount for an SSS 2nd salary loan is currently set at PHP 30,000 for a one-month loan and PHP 60,000 for a two-month loan.
Repayment Terms and Interest Rate: How to Pay Back Your SSS 2nd Salary Loan
The SSS 2nd salary loan has a repayment term of 24 months or 2 years, starting from the second month after the loan’s approval. The interest rate for the loan is 10% per annum, calculated based on the diminishing principal balance. The monthly amortization includes principal and interest payments.
Loan repayments can be made through salary deductions by the employer, direct payment to any SSS branch, or through authorized payment channels such as banks and payment centers.
Penalties for Late Repayment: Understanding the Consequences of Delinquency
Late repayment of an SSS 2nd salary loan will result in a penalty of 1% per month on the outstanding loan balance. It is crucial to make timely payments to avoid penalties and maintain good standing with the SSS.
Conclusion: Maximizing the Benefits of the SSS 2nd Salary Loan
The SSS 2nd salary loan can be a valuable financial resource for eligible members facing short-term financial needs. By understanding the eligibility requirements, loanable amount, and repayment terms, members can make informed decisions and fully benefit from this SSS offering. Remember to make timely loan repayments to maintain a good credit standing and avoid penalties.