• Salary Loan

    Salary loan refers to either borrowing or taking a loan from your employer or from a government institution such as Pag-IBIG or the Philippines Social Security System (SSS) which you have been contributing to on a monthly basis as an employee. It is usually utilized for emergencies and short term needs. You can opt for this if you are short of funds for your children’s tuition fees, a small medical emergency, a celebration or even a house repair. A host of private banks/institutions also offer loans for salaried individuals.

    Here, the terms of the loan depends on the lender. For example, in the Philippine Social Security System (SSS), you are allowed to take a one month salary loan. This amount is equivalent to the average contribution you have made during the last 12 months. Getting a loan from Pag-IBIG and the Philippines Social Security System (SSS) is more advantageous since the rate of interest is much lower and the terms are better and a lot more convenient.

    In essence, a salary loan is a monetary loan that is provided to borrowers and is expected to be repaid in installments or in full when the borrower receives their paycheck.The loan amount that can be borrowed is based completely on the total number of contributions made and depends on the type of scheme (government or private) and plenty of other factors.

    Let's explore some of the most popular salary loan offers in the Philippines today.

    Salary Loans From Public Sector

    Pag-IBIG Fund Salary Loan

    Philippines’ premier government aided fund offers a range of retail lending products to Filipinos at pleasing rates and terms, making it a much sought after and popular option for millions of borrowers. The fund also offers salary loan to fulfill various monetary and emergency needs.

    While some companies don’t, there still are many companies that facilitate Pag-IBIG loans for all their employees.

    You can apply for a Pag-IBIG Salary Loan in three easy steps:

    • Step 1: Keep copies of 2 valid IDs, latest payslip and a provide duly filled and signed Pag-IBIG Multi-Purpose Loan Application Form before you go to the Pag-IBIG branch.
    • Step 2: The employer’s information that you need to complete the form are Employer, SSS/GSIS No., Agency Code, Signature of Office Head/ or Authorized Representative, and Branch Code.
    • Step 3: Carry original valid IDs along with all other documents to the Pag-IBIG Branch.

    After you have submitted all the required documents to the personnel in-charge and the necessary checks completed, you will be given a date to claim your check if you qualify for the loan.

    Read more about Pag IBIG Salary Loan

    Social Security System (SSS) Salary Loan

    This multi-purpose loan is granted to voluntary, salaried and self employed members to help them meet short term financial needs, making it one of the most sought after loan instruments in the Philippines today. The loan amount disbursed is primarily dependent on the income drawn by the borrower. The applicant can look forward to being approved for a loan amount which is an average of last 12 months’ salary credit.

    The following eligibility and requirements have to be fulfilled in order to qualify for the loan.

    Eligibility Requirements of SSS Salary Loan

    • The borrower must have at least 36 monthly contributions, six of which should have been contributed in the last 12 months to be eligible for a one-month loan.
    • The borrower must have at least 72 monthly contributions, six of which should have been contributed in the last 12 months to be eligible for a two-month loan.
    • If the person who is borrowing is employed, his employer must be updated on loan remittances and the contributions as well.
    • The borrower should not have been granted the final benefit i.e. total permanent disability, retirement or death.
    • The borrower must be up to date in the payment of his obligations in all his member loans including, salary, emergency, calamity, stock investment, education or even housing loans direct from SSS.
    • The borrower must be under 65 years of age at the time of application.
    • The borrower must not be disqualified due to any fraud committed against the SSS.

    Terms, Rates & Fees

    • The one-month and two-month salary loans can be repaid over a period of 2 years spread over 24 equal monthly installments. Any pending principal amount after the date of maturity of the loan, will compound interest on a continuous basis until the amount is fully repaid.
    • The loan should be repaid in 24 installments based on the diminishing principal balance with an interest of 10% charged on the amount annually.
    • If the loan amount is not paid on the fixed due date, the payment will bear a penalty of 1% every month.
    • Excess amortization payment will be applied to the principal outstanding balance of the loan.
    • A service charge of 1% of the entire loan amount will be charged and deducted during the disbursement of the loan amount. The service fee is waived off for Salary Loan Early Renewal Program.
    Read more about SSS Salary Loan

    Salary Loans From Private Sector

    There are quite a few offers made by leading banks/financial institutions in the salary loan sector. Let's explore some of the most prominent offers made by the private sector.

    BanKO Salary Loan

    This institution offers multi-purpose loan for employees of companies accredited by BPI Globe BanKO. Monthly amortization payments are deducted by means of debit from salary deduction. This program helps employers in employee retention as this offer from the bank provides instant loan solutions to accredited companies. The process of availing this loan is quote simple and easy to fulfill, owing to the quick and seamless process maintained.


    • Interest charges are billed at a monthly rate (EIR) of 2%, making it a pretty affordable option to consider in case of a casual or emergency need.
    • The bank offers a wide range of repayment terms to choose from 3 months to 2 years.
    • Borrowers can look forward convenient way of repayment where the installments are deducted by the payroll team before the actual salary is credited.

    Maybank Salary Loan

    The leading banking brand in the Philippines offers salary based loans for the salaried class with a loan quantum as high as P500,000. This loan instrument helps companies in administering a sound lending system as a part of their HR initiatives to provide employees’ credit when they need the most.


    • The borrower can take out a loan amount between P15,000 to P500,000, depending on the requirement.
    • The bank offers flexible repayment terms of 12, 18, 24 and 36 months. The borrower is free to choose a term as per their repayment convenience.
    • The eligibility criteria and requirements are simple. The applicant can get up to 5 times their monthly salary as the loan amount.

    UCPB Your Easy Salary (Y.E.S) Loan

    A one of its kind salary loan offer in the Philippines where the borrower get a complimentary debit card which can be used for utilizing the disbursed amount through various channels and works just like a debit card.


    • This loan is available for both salaried and self employed applicants with a minimum monthly income of P30,000.
    • One can borrow a loan amount between P50,000 to P300,000, depending on the requirement.
    • Repayment can be made by simply issuing PDCs (Post date cheques). The borrower is free to choose a term between 12 to 36 months.
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