Being either self-employed or employed by a company means you are entitled to certain rights and government benefits that will be helpful in special situations.
You have to be a member of the SSS or Social Security System and understand how the process works to successfully acquire a loan and avail of its many benefits.
There are a number of qualifications and rules to follow so you can get approved without worry.
Qualifications for SSS Loan Applicants
SSS loan applicants need to be currently self-employed, employed or a voluntary paying member. You should have provided at least six monthly payments for a period of twelve months before the months when you file for a loan. This means that if you’re applying for a one-month loan, you need to have posted at least 36 monthly contributions. Applying for a 2-month loan requires you to have posted at least 72 monthly contributions. Make sure that you also have updated payment of other member loans.
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Employees must check that their employers are updated in their loan remittances and contributions. Other requirements include not having received final benefits and having a clear record. You should not be subject to any fraud cases that might disqualify you from applying for an SSS loan.
The Requirements for SSS Loan Application
Employees must submit the SSS Form ISL-101 and a digitized SSS ID Card or E-6. The self-employed voluntary member, non-working spouse, farmer or fishermen, household helper or overseas worker should submit an accomplished SSS Form ISL-101, as well as a digitized SSS ID Card or E-6. Two valid identification cards are also required, with at least one showing your recent photo and birthdate. For the valid identification cards, the SSS will accept the TIN or tax identification number card, school or company ID, unexpired driver’s license, PRC or Professional Regulation Commission card, postal ID or passport.
The Process of SSS Loan Application
Applying for an SSS loan can be done in any SSS main or regional office. The one-month and two-month loans are payable for a period of two years. The annual interest of the salary loan is 10%. The salary loan can be renewed after the prescribed two years. There is a service fee of 1% from the proceeds of the loan and a penalty of 1% interest each month for failure to pay. The first deduction from the salary will be made on the second month after the date of the loan.