Sample Computation of SSS Calamity Loan

The SSS Calamity Loan is a financial assistance program provided by the Social Security System (SSS) of the Philippines to help its members recover from natural disasters and calamities. This guide will walk you through a sample computation to help you understand how to calculate the amount you can borrow under this program. It will cover the eligibility criteria, loan amount computation, and repayment terms in detail.

Eligibility Criteria

To qualify for the SSS Calamity Loan, you must meet the following criteria:

1. Active SSS Member: You must be an active member of the SSS with at least 36 monthly contributions, of which 6 should be within the last 12 months preceding the application.
2. Contribution Requirements: Ensure that your contributions are up to date. Any arrears must be settled before you can apply.
3. Disaster Area: The calamity loan is available to members residing in areas declared as disaster zones by the National Disaster Risk Reduction and Management Council (NDRRMC).

Computation of Loan Amount

The SSS Calamity Loan amount is determined based on your average monthly salary credit (MSC) and the number of contributions made. Here is a step-by-step guide to computing your loan amount:

1. Determine Your Average Monthly Salary Credit (MSC): Your MSC is based on the average of your highest 12 months' contributions.

2. Calculate the Loanable Amount:

   • The maximum loan amount you can borrow is up to 1.5 times your average MSC.
   • The minimum loan amount is PHP 1,000.

Formula for Computation:

$\text{Loan Amount}=\text{Average MSC}\times 1.5$Loan Amount=Average MSC×1.5

For example, if your average MSC is PHP 15,000:

$\text{Loan Amount}=15,000\times 1.5=22,500$Loan Amount=15,000×1.5=22,500

This means you can borrow up to PHP 22,500, provided it does not exceed your maximum allowable loan.

Repayment Terms

The repayment period for the SSS Calamity Loan is typically 24 months. However, the SSS may extend this period depending on the situation. The loan is payable in monthly installments with an interest rate of 6% per annum.

Sample Repayment Calculation:

Using the loan amount computed above (PHP 22,500) and the standard 6% interest rate, let’s calculate the monthly installment.

Interest Calculation:

1. Principal Loan Amount: PHP 22,500
2. Interest Rate: 6% annually
3. Repayment Term: 24 months

Monthly interest rate = 6% / 12 months = 0.5%

The total amount to be repaid is the principal plus interest. The formula to calculate the monthly installment is:

$\text{Monthly Installment}=\frac{\text{Principal}\times (1+\text{Monthly Interest Rate})}{\text{Number of Months}}$Monthly Installment=Number of MonthsPrincipal×(1+Monthly Interest Rate)​

Using our values:

$\text{Monthly Installment}=\frac{22,500\times (1+0.005)}{24}\approx 941.25$Monthly Installment=2422,500×(1+0.005)​≈941.25

Key Points to Remember

• Loan Amount: Up to 1.5 times your average MSC or PHP 1,000 minimum.
• Repayment Term: Typically 24 months, with a 6% annual interest rate.
• Eligibility: Must be an active member with up-to-date contributions and residing in a disaster area.

Conclusion

The SSS Calamity Loan provides crucial financial support during times of disaster. By understanding the computation and eligibility requirements, you can effectively manage your application and repayment. For further details or assistance, visit the SSS official website or your nearest SSS branch.