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How to Apply for SSS Salary Loan as an OFW Abroad

Many OFWs do not know that they can avail of salary loans from the Social Security System (SSS) even if they are abroad. You can use these loans for whatever purpose you need. We outline some important points for you and we hope you find this guide useful in applying for a loan. Read on to find out how you can avail of this benefit.

SSS is one of the many offices that seek to make life easier for Filipinos here and abroad. It is a state-run, social insurance program that caters to workers in the professional, private and informal sectors.

sss salary loan application as OFW

Step by Step Guide to Applying for an SSS Loan

Normally if you’re working in the Philippines, your registered company will set up the monthly contribution automatically. However, it gets tricky when you’re an OFW working for a company abroad. You have to voluntary send your monthly SSS contribution every month. Accredited money exchange centers are one of the ways that you can send your monthly contribution, another one would be to have a family/friend to regularly submit your contribution on your behalf.

No matter what’s your preferred method, we advise you not to take this for granted it’s good to have some form of pension as we become older.

Who are eligible?

  • An active SSS member with at least 36 posted monthly contributions.

For a one-month salary loan, a member must have posted 36 monthly contributions. Six of the contributions must have been made within the last 12 months prior to the application filing.

For a two-month salary loan, a member must have posted 76 monthly contributions in total. Six of the contribution must have been made in the 12 months prior to the application of the loan.

  • Must be under 65 years old at the time of the application.
  • Member must not be a recipient of final benefit such as total permanent disability, retirement and death.
  • Member must not have been disqualified because of fraud against the SSS.

How much can be loaned?

A member can avail of a loan based on an average of the 12 monthly salary credits or MSCs.

For a one-month salary loan, the amount is based on this MSC or the loan amount whichever is lower.

For a two-month salary loan, the amount is based on twice the MSC or the loan amount whichever is lower.

How long will you pay the loan?

You can pay the loan in 24 monthly installments. It would begin in the second month after the approval and release of the loan. Payments must be made before the payment deadline as per SSS Circular 2011-03.

How much is the interest rate for the salary loan?

An SSS salary loan is charged a 10% yearly interest. This is based on the diminishing principle balance. Any excess in the payment made will go to principal amount.

In case of delinquent payments, what will happen?

In case a member fails to make a payment on time, there will be a 1% penalty charged to your account.

Are there service fees?

Yes. The SSS will charge a 1% service fee and deduct it from the loan proceeds.

How do I apply for a salary loan? Here’s The Procedure:

Here are the steps that you need to do if you want to apply for a salary loan:

  • Fill up a Member Loan Application form. This can be downloaded from the SSS site or can be given by the SSS Office.
  • Show your SSS ID. If you do not have any SSS ID, you must apply using an E-6 form.
  • Produce 2 valid IDs.
  • Wait for the application process to be accomplished.

Who can apply for the salary loan?

If you are not going to personally file the salary loan, you can have someone file it for you. He or she is going to be your authorized representative.

He or she must bring the following:

  • Member-borrower’s Member Loan Application Form
  • Member-borrower’s Social Security System card with two valid IDs with photos and signature.
  • Two valid IDs of the authorized representative with photos and signature.
  • Letter of Authority signed by the Member-borrower and the authorized representative.

If the salary loan will be filed by an Employer’s Representative, he or she should bring the following:

  • Member-borrower’s Member Loan Application Form
  • The Authorized Company Representative card from the SSS
  • Letter of Authority from the employer.
  • Representative’s two valid IDs with signatures and photos
  • Acknowledgment stub

Where can you file the Salary Loan?

You can file the loan either at the SSS Representative Office in the country where you are deployed or if there is no SSS office, you can the application and the support documents to the Philippines for filing at the nearest SSS branch.

What other important thing do I need to know?

Any documents from abroad should be authenticated by the authorized representative of the Philippine Consulate or Embassy.

Salary loans can help you establish a business or to pay for immediate needs. Use it wisely and make sure you would pay for it so the funds can circulate and help other OFWs in need.

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