The Social Security System’s (SSS) Salary Loan is undeniably one of the best options when you are in need of a cash loan. With only 10% per annum and 1% service fee, it surely beats other banks and financial institutions when it comes to lower interest rates.
Furthermore, you can loan a month or two-month worth of your salary depending on your salary credits and number of contributions. However, there are instances that SSS Salary Loan applications get rejected. To avoid the hassle of having to travel back and forth to the SSS branch and the disappointment of being rejected, take note of these common reasons why your loan application may get denied.
You did not meet the minimum number of contributions
To be able to qualify for a one-month loan, you should have at least 36 posted monthly contributions, with six of those contributions made 12 months before the month when you filed your application. For example, you might have completed 36 monthly contributions, but you have less than six or no contribution a year prior your application, your loan application will be rejected. The same rule applies for a two-month loan, except you must have at least 72 posted monthly contributions.
Take note of the word “posted.” Some applicants submit their salary loan form on the month they expect to have completed the number of minimum monthly contributions without realizing their contribution for that said month is not posted yet. Also, some employers post contributions quarterly or semi-annually, so it is better to check with your HR first.
Your SS Number is tagged as Temporary Number
Once you register on the SSS Website, you will be able to obtain your SS Number and you can immediately proceed making contributions. However, if you have not done the second phase of the registration process, you will not be able to enjoy the benefits of SSS including the salary loan. To convert your SS number from temporary to permanent status, simply present supporting documents such as birth or baptismal certificate or valid passport to any SSS branch.
You have not paid 50% of your outstanding loan and/or you have not reached the renewal date yet
You can file a new loan application even if you have not yet finished paying your current loan yet. However, in order to successfully have your loan renewed, you need to pay at least half or 50% of the principal amount of your loan. A year should have also lapsed from the first month of your loan amortization or first scheduled payment.
Often times, loan applicants have reached the one year mark but their loan payment is inadequate by just a few hundred. If you are planning to renew your loan after a year, you can ask your HR to deduct any deficit from the required loan payment to make sure you do not encounter any problems.
You have more than one SS Number
You might have met the other qualifications for the salary loan, but upon submission of your application, you discovered that you registered for SSS more than once. In this case, before your SS loan application can be processed, you have to fix your records first. You should visit your servicing branch and request for the cancellation of the other number/s and consolidate all contributions under the retained number. This process can take weeks, so make sure that your records are accurate before applying for a loan.
Your employer has not been posting your loan payments
There had been many cases wherein employers fail to remit loan payments even after deducting them from the employee’s salary. If this is the case, try verifying with your HR or employer first. If they do not comply, you can file a complaint at your SSS servicing branch. Do not forget to bring a proof of your salary deductions such as your pay slips.
The SSS Salary Loan is a convenient way to borrow money, but make sure to avoid the hassle by checking everything first before submitting your application. Make sure to track your records easily thu Text-SSS or My.SSS Web portal.
Related: How To Avail SSS Educational Loan