SSS Salary Loan Guide
What Is the Interest Rate for the SSS Salary Loan?
Check whether your current SSS Salary Loan rate is 8% or 10%, how the diminishing-balance method works, and what fees or penalties can affect the total cost.
Quick answer
The current stated rate is usually 8%, but some renewals use 10%
Both rates are applied on a diminishing principal balance, not as a flat add-on rate.
| Salary Loan application | Annual rate |
|---|---|
| Initial Salary Loan | 8% |
| Renewal with no penalty-condonation availment within the past 5 years | 8% |
| Renewal after penalty-condonation availment within the past 5 years | 10% |
If this is a renewal, your penalty-condonation history matters. Your own Disclosure Statement is the best place to confirm the rate and EIR actually applied to your loan.
Open SSS Salary Loan CalculatorHow does the diminishing-balance interest work?
The 8% or 10% rate is not a flat interest charge on the original loan amount for the entire term. As you pay the loan, the principal balance goes down, so regular interest is based on the remaining principal balance.
Because of this, a shortcut such as loan amount × annual rate × number of years should not be treated as the final total-interest calculation for an SSS Salary Loan.
Why can your EIR be different from 8% or 10%?
The stated annual rate and the Annual Effective Interest Rate (EIR) are not exactly the same thing. The EIR reflects the real borrowing cost more closely and can vary with the loan amount, release date, amortization start date and applicable charges.
Your exact EIR appears in your SSS Salary Loan Disclosure Statement. If you want to verify the actual cost of your own application, check that document instead of relying only on the headline rate.
Learn how to read the SSS Salary Loan Disclosure StatementWhy can the amount released be lower than the approved loan?
The approved loan amount and the cash credited to you can differ because SSS deducts charges before release.
| Deduction | Current rule |
|---|---|
| Service fee | 1% of the loan amount, deducted from the loan proceeds. |
| Pro-rated interest | Interest from the loan grant date up to the end of the month before the first amortization month, deducted in advance. |
A lower net release does not automatically mean the approved loan amount changed. Compare the gross loan amount with the deductions shown in your Disclosure Statement.
How long do you repay an SSS Salary Loan?
The current Salary Loan is payable in 24 equal monthly amortizations. Amortization starts on the second month following the month of loan approval.
This is why an old calculator or article that lets users choose between a 12-month and 24-month Salary Loan term can give the wrong impression about the current program.
What happens if an SSS Salary Loan payment is late?
An amortization paid after the due date is subject to a 1% penalty per month, computed and charged for every day of delay.
If the loan remains unpaid after its term, SSS states that a 10% annual interest rate plus the 1% monthly penalty applies until the loan is fully paid.
Payments are applied in this order: penalty → interest → principal.
Which interest rate should you use?
First Salary Loan
Use 8% as the current stated annual rate.
Salary Loan renewal
Use 8% if you did not avail of penalty condonation within the previous five years.
Renewal after penalty condonation
Use 10% if you availed of penalty condonation within the previous five years.
SSS may adjust Salary Loan rates based on market conditions. Any announced change applies to new or renewed loans from its effective date.
Frequently asked questions
Continue your Salary Loan check
Estimate your loan, review your statement, or browse the full Salary Loan guide.
Related Salary Loan guides
- What Is an SSS Salary Loan Disclosure Statement?
- SSS Salary Loan Statement of Account
- When Can I Renew My SSS Salary Loan?
- SSS Salary Loan Calculator
Official reference: SSS Salary Loan Program. Page reviewed and updated September 14, 2026.