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

click here to access loans on the sss website

Reminders for SSS payments

Loans are paid on or before the 10th of the following month.  Otherwise it will be in default.

Deadline for payment of Contributions depends on the last digit of the SSS Number.

Remember, if you applied for loan condonation that ended last 30 September 2012,
YOU DO NOT WANT TO BE IN DEFAULT...

On the SSS Loans Recent "Fracas" ... addendum - CHeck out HTT's column

As an SSS member, i read with Spockian eyebrow about the recent lambasting of the SSS due to the salary loan interest computation.

What is all this fuss?  Dont you check what you have to pay before you take out a loan?  Or do you blindly sign for a loan? if the member checked it out, then that means he agreed to the loan, with all its ramifications, yes? do i hear a no?

Have you read about it?  Does it bother you as a member?  Most members use it when they need funds immediately and it is usually only the actively employed who pays their loans.  No surprise there as the employer deducts the amortization from one's income.the rest of the members forget they have loans.

everyone i discuss sss with, i say, dont forget to pay your loan.  if you cant pay in bulk, then pay what you can as regularly as you can.

do a Sinatra (i listen to oldies but goodies), that is "regrets, i have a few" only.

HTT's take on the loans ... vs pensions

Have you stopped paying your SSS contributions? You can continue - no sweat

i was discussing SSS contributions with my taxi driver at lunch today.   he was saying that he wanted to continue paying his contributions - but as a voluntary member but couldnt, because he couldnt find someone who was willing to discuss things with him.  he wanted to be a voluntary member because his employer, the cab company declined to pay his contributions.  i cannot remember the cab company so i cannot report this to the Department of Labor and Employment (DOLE) office.

so i just said that it would be easy to continue paying.  just pay using the RS-5 form, tick the box beside Voluntary Member and sign the declaration of earnings stating that - that is the your monthly salary credit (MSC) amount that you would pay.

i also discussed the same issues with a fellow patient - we were both waiting for NKTI Cardiologist Dr. Joseph Michael  Jaro.  I also told the fellow patient that the salary loan condonation was ending 30 September 2012 and to take advantage and pay!

Click here for the editable RS-5 form
Click here for the normal RS-5

may i say again that please try to pay the highest MSC that you can afford.

the maximum MSC at this point is 15,000.00 with a contribution payment of 1,560.00

1,560 = 104 X 15.  The contribution rate is currently at 104 pesos per thousand MSC.

so ulitin ko lang po.  Kung gusto ninyong ituloy yung inyong pagbayad ng SSS contributions bilang isang volunteer member, magbayad at gamitin ang SSS form RS-5 at i-check lamang yung VM box, at pirmahan yung inyong kita. magbayad sa opisina ng SSS para madaling ma post at makita nyo.

i will try to put the form but again this blog when not done at home has issues with mozilla.

if it doesnt take, click on any of the links to see the form

UPDATE TO THE POST: 02/18/2014  ==>  LET ME REITERATE.  SSS DOES NOT ACCEPT RETROACTIVE PAYMENTS. IF YOU FAIL TO PAY, THERE WILL SIMPLY BE A GAP IN PAYMENTS, BUT YOU CAN CONTINUE PAYING.

UPDATE:  22 AUGUST 2014

Effective 1 September, a new form will be used for payments.  Please see to it that you are using the new form to do payments.  

Just pay your contribution and dont forget to define your MSC.  Your MSC should at least be at the same level as your last.  DO NOT LOWER YOUR MSC if you can help it.