Pag-IBIG vs SSS Salary Loans: What’s the Difference? (2019) | Coins.ph

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 LoanSSS Salary Loan
Loan Eligibility24 monthly contributions36 to 72 monthly contributions
Loan Amount60% to 80% of your total accumulated valueUp to P30,000
Interest Rate Per Annum10.75%10%
FeesLate payment penalty: 0.5% of unpaid amount every monthService fee: 1% of the total loan amount

Late payment penalty: 1% per month

Loan Processing1-2 weeks2-3 weeks
Repayment Terms24 months24 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!

 In Blog, Money Matters, Tips & Tricks
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