SOCIAL SECURITY SYSTEM

Salary Loan
A cash loan granted to an employed member or a currently paying self-employed or voluntary member.
It is intended to meet the member's short-term credit needs.

Amount of Loan
A one-month loan is equivalent to the average of member’s last twelve (12) Monthly Salary Credits
(MSC), or the amount applied for, whichever is lower.

Terms of Loan
The loan shall be charged an interest rate of ten percent (10%) per annum until fully paid, based on
diminishing principal balance, and shall be amortized over a period of 2 years. A down-payment of 2% is
required before release.

Real-Life Problem:
Mr. Lawrence Santos, a private security agency supervisor, is planning to avail SSS salary loan amounting
Php 25,000.00. Compute for the following:
1. Mortgaged Amount
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2. Monthly Installment
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3. Total Amount Paid

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4. Total Amount of Interest

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