Interest and Penalty Answer on SSS Salary Loan Question

There have been many questions on interest and penalty on SSS Loans
Instead of answering these questions individually, i have decided to post this little tidbit for their information.

If there are specific questions on this answer, please comment -

Answer taken from the SSS Website


INTEREST AND PENALTY

The loan shall be charged an interest rate of 10% per annum based on diminishing principal balance, and shall be amortized over a period of 24 months.

Interest of 10% shall continue to be charged on the outstanding principal balance until fully paid

Any excess in the amortization payment shall be applied to the outstanding principal balance.

Loan amortization not remitted on due date shall bear a penalty of 1% per month until the loan is fully paid.

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you can also find this at the back page of the salary loan application form

register as an online member so you can request for a SOA

interest and penalties change on a daily basis, on a straight-line method

If you wish to read more on salary loan, read more on the SSS website
if you have problems reaching the sss website, drop a comment so i can inform the sss

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