Best Cash Loans 2022: SSS Salary Loan vs. Pag-IBIG Multi-Purpose Loan

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Loans are incredibly important for Adulting Pinoys who need access to larger amounts of cash than they can muster from their pockets.

Maybe you need money to renovate your house, or for an emergency. You might even need additional funding for your small business. Whatever the case, most of us aren’t fortunate enough to have this kind of money sitting on our bank accounts.

Thus, we need to have accessible, trustworthy loans for our immediate needs – and where better to borrow than from our government agencies?

This article will discuss SSS Salary Loan vs. Pag-IBIG Multi-Purpose Loan for your loan needs, and how you can get them.

Comparing SSS Salary Loan vs. Pag-IBIG Multi-Purpose Loan

In the Philippines, the SSS and Pag-IBIG are among the most sought out lending institutions. Because both the SSS Salary Loan and Pag-IBIG Salary Loan are unsecured loans, you don’t need to have assets for collateral to avail of these loan services.

Not only are SSS and Pag-IBIG borrower-friendly, but they also offer lower interest rates compared to other lenders, such as banks.

If you’re looking for a hassle-free experience, then both loans’ easy repayment processes for employed members would work best for you. You can even pay your dues online or through their website.

The SSS and Pag-IBIG loans have unique advantages that you won’t find in banks. Thus, to help you sort out our options, we have outlined a brief guide to compare these two financing options.

SSS Salary Loan

If you’re looking for a loan that can fulfill your short-term financing needs, then the SSS Salary Loan may be worth looking into. This cash loan is available to any employed, self-employed, or voluntary member of the SSS.


The SSS Salary Loan offers a 10% annual interest rate and two loan options: the one-month and two-month SSS Salary Loan. Your eligibility will depend on the loan option you chose, but generally, anyone below 65 years old and with up-to-date contributions can avail of the loans.

To avail of this loan from SSS, you will need to accomplish the Member Loan Application Form and visit the SSS website to fulfill your application.

Loan Amount & Interest Rate

The amount the SSS can lend you on your first loan will depend on your chosen loan option. There are two loan options for SSS salary loans, which in turn, depends on your SSS contributions for the past year.

One-month Loan

First, you can get a One-month SSS Salary Loan.

The amount that you can loan depends on whichever is lower between these two factors:

  • Your desired loan amount 
  • The average amount of your last salary credits for the past year, or your last 12 monthly salary credits (MSCs).

Whichever has the lowest amount will be the amount that you can loan. The loan is payable within 2 years, in 24 installments.

Two-month Loan

On the other hand, the Two-month SSS Salary Loan you can get will depend on these two factors.

  • Your desired loan amount 
  • Twice the average amount of your last year of payment (last 12 MSCs)

Once again, the approved loan amount will be whichever of the two amounts is the lowest. Just like the one-month loan, it’s also payable within 2 years, in 24 installments.

Interest rate

In terms of interest rate, SSS charges 10% annually.

This interest rate is computed through the diminishing principal balance, which means you get reduced interest every time you pay for the month. Until the loan is fully paid, you will get charged an interest. Take note that it compounds, so you have to be careful about missing payments.

Furthermore, excess payments from monthly amortizations will be redirected as payments for your principal balance.


There are different eligibility requirements for various SSS loans.

For instance, a One-month Loan requires over 36 monthly contributions. Not just that, a sixth of these posted contributions should have been paid within the last year before your application.

On the other hand, a Two-month Loan requires around 72 monthly contributions, with a twelfth of them posted within the last year before your application.  

Your contribution payments are a criterion as well. Furthermore, you should also be younger than 65 years old when you apply.

Beware that if you have been granted a final benefit for death, retirement, and total permanent disability payment, then you’re not eligible for the SSS loan.

The same goes true if you have committed fraud against SSS.


To apply for the SSS loan, you must first accomplish the Member Loan Application Form.

You must also prepare two valid IDs, an R-6 acknowledgment stub or a digitized SSS ID, and a recent photo.

Examples of Valid IDs are the driver’s license, Passport, Tax Identification Number (TIN Card), Seaman’s Book, OWWA Card, etc.

Application Process

Here’s how you can apply for an SSS Salary Loan online.

  1. On the official website of SSS, under the E-services section, click the “apply for salary loan” option.
  2. You will then be asked to choose between submitting a peso net participating bank or E-Wallet/RTC/CPO or an SSS issued UPB Quick Card.
  3. Afterward, input your bank account details and mobile number.
  4. Next, select the document type.
  5. Choose the applicable type for your document and wait to get approved
  6. Once you’ve been given the go signal, you can immediately fill up the application form. Proceed to the E-services section on the website, and click “apply for salary loan.”
  7. The amount you’re eligible for a loan will be visible on your end once your application is approved.
  8. Take note that the maximum amount you can loan is Php 36,000. Choose your desired amount, read the terms and conditions, and then await the certification from your employer. 

Pag-IBIG Multi-Purpose Loan

The Pag-IBIG Multi-Purpose Loan or MPL is a short-term cash loan available for qualified Pag-IBIG members. You can use this loan for home renovations, gadget repairs, and other situations requiring immediate financial assistance.


The MPL has a slightly higher interest rate compared to the SSS Salary Loan.

To avail of this loan, you have to be an active member of Pag-IBIG. You will also be required to submit an application form and a copy of a valid ID.

The application process is conducted through the Pag-IBIG website. You can learn more about this loan and how you can apply for it in the next few sections.

Loan Amount & Interest Rate

If you want to be able to borrow a high amount from Pag-IBIG, then you must save more money through PAG-IBIG Regular Savings. This is because Pag-IBIG will only lend up to 80% of one’s Pag-IBIG Regular Savings to a qualified member.

Your employer’s contributions, your monthly contributions, and dividends accumulated over time constitute your total Pag-IBIG Regular Savings.

On the other hand, you can borrow an amount equivalent to 80% of your total Pag-IBIG Regular Savings minus the balance of your calamity loan if you have an outstanding Calamity Loan. 

Furthermore, the 10.5% per annum loan interest of Pag-IBIG is 0.5% higher than SSS.

Just like SSS, though, a Pag-IBIG MPL is payable in 24 installments, with a grace period of 2 months.


To be eligible for a Pag-IBIG Loan Requirement, you need to be an active Pag-IBIG member with 2 years worth of membership savings.

You will also be asked for a valid proof of income.

You should also have an updated payment record for your housing or calamity loan if you have one. Failure to update your record may result in the disqualification of your application.


Generally, the Pag-IBIG Loan application requires you to fill up the Original Multi-Purpose Loan Application Form.

You should submit a Photocopy of one valid ID along with the form. These can either be a Passport, Driver’s License, PRC ID, Police Clearance, NBI Clearance, Voter’s ID, Postal ID, etc.

Proof of income is also a necessity. However, this may depend on whether the borrower is employed, self-employed, or an OFW.

Application Process

Here’s how you can apply for a PAG-IBIG Multi-purpose Loan online.

  1. Visit the Pag-IBIG website.
  2. At the bottom, you can choose the type of loan most applicable to you.
  3. You can then fill up the loan application form after reading and agreeing to its privacy terms.
  4. The application form must be signed by your HR if employed. For self-employed individuals, two witness signatures are required. 
  5. You also need to submit one valid ID, a selfie showing your id card and cash card, and a Cash Card or Loyalty Card Plus issued by Asia united bank, Union Bank of the Philippines, LandBank of the Philippines (LBP), or United Coconut Planters Bank (UCPB) cash card. 
  6. Afterward, you can choose your loan terms.
  7. Input your personal information such as your Pag-IBIG MID number, mobile number, and email address.
  8. Your cash card status will then be validated using your OTP.
  9. The last step will require you to submit a copy of your loan application and a valid ID card with a photo.
  10. Do note that the site only accepts files as big as 3 MB and in jpg, jpeg, png, or pdf format 
  11. Before submitting your entry, make sure that the application is successfully uploaded by checking if the document is in green.
  12. You can then track your loan status from a text from Pag-IBIG containing a tracker link
  13. Remember that the cash card will still be empty for three days even after your loan has been approved. 
  14. Just wait for a text from Pag-IBIG regarding the amount you can loan. Once you receive it, this means you already have money on your cash card. 

SSS Salary Loan vs. Pag-IBIG Multi-Purpose Loan

SSS Salary Loan and Pag-IBIG Multi-Purpose Loan are the two most reliable forms of loans that are easily accessible to most Filipinos.

If you’re a regular employee or a regularly-paying voluntary member of either of these agencies, then these two government loans are very available to solve your urgent financial needs.

Read about SSS Salary Loan vs. Pag-IBIG Multi-Purpose Loan on Adulting Pinoy

And with this article, now you have everything you need to choose between the two!

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1 Comment

  1. Pag-IBIG is far better than SSS. In Pag-IBIG, once you have an existing loan and have not paid for it, they will offset your previous loan from your total contributions. SSS is the worst. You’re borrowing your own money, the fruit of your labour, and yet once you have an unpaid loan, even if it is more than 10 years, they will not offset it from your contribution. You will still need to pay for it.

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