Pag-IBIG Salary Loan vs SSS Salary Loan: What’s the Difference?
Need cash ASAP? Take advantage of your Pag-IBIG Fund and Social Security System membership by applying for a salary loan, especially during times of emergency and other unforeseen circumstances.
A salary loan is a small amount of money equivalent to your current salary that you can borrow for a wide range of purposes, such as utilities, medical needs, car repair, home improvement, education, and other immediate financial needs.
Classified as a type of personal loan, salary loans offer low interest rates and convenient repayment methods.
But where should you apply for a salary loan? Check out the difference between the Pag-IBIG Fund Salary loan versus the SSS Salary Loan to help you decide which one suits your needs:
|Pag-IBIG Fund Multipurpose Salary Loan||SSS Salary Loan|
|Loan Eligibility||24 monthly contributions||36 to 72 monthly contributions|
|Loan Amount||60% to 80% of your total accumulated value||Up to P30,000|
|Interest Rate Per Annum||10.75%||10%|
|Fees||Late payment penalty: 0.5% of unpaid amount every month||Service fee: 1% of the total loan amount|
Late payment penalty: 1% per month
|Loan Processing||1-2 weeks||2-3 weeks|
|Repayment Terms||24 months||24 months|
Pag-IBIG Fund Multipurpose Salary Loan
Aside from housing loans, Pag-IBIG Fund also offers a multipurpose salary loan to help you with your short-term needs.
To qualify, you need to be an active Pag-IBIG Fund member with a minimum of 24 monthly contributions – one of which has been paid within the last six months.
The amount that you can loan from Pag-IBIG depends on several factors, like your preferred loan amount and capacity to pay.
If you’ve been a contributing member for ten years, you can borrow up to 80% of your total accumulated value from your monthly contributions, employers’ contributions, and accumulated Pag-IBIG dividends. If not, your amount ceiling is at 60%.
You’ll get a fixed 10.75% interest rate throughout your loan term of 24 months. Loan processing typically takes 1-2 weeks.
Though Pag-IBIG Fund doesn’t charge any processing fees, you have to pay an additional 0.5% for late payments every month.
SSS Salary Loan
Compared to the Pag-IBIG loan, the SSS salary loan only lets you borrow an amount equivalent to one or two months of your salary, with a maximum limit of P15,000 and P30,000, respectively.
To qualify for a one-month salary loan, you should have made at least 36 monthly contributions in the past –six of them within the last 12 months. For two-month salary loans, 72 monthly contributions are required.
The interest rate is pegged at 10% annually on your outstanding principal balance. That means that the interest you’re paying diminishes over time.
You also have to pay a service fee of 1%, plus a penalty of 1% per month for late payments.
It takes two to three weeks for SSS to process your application. Like the Pag-IBIG multipurpose loan, you have to repay your SSS salary loan within 24 months.
You can pay both your SSS and Pag-IBIG Fund salary loans via salary deductions or through any branch, accredited banks, and payment centers. You can also use Coins.ph as a convenient SSS and Pag-IBIG online payment option.
To do that, select Pay Bills in your Coins.ph wallet and look for Pag-IBIG and SSS in the list of billers. Add your payment details, and you’re done!