If you’re a regular employee in the Philippines, chances are you’ve already contributed to both SSS (Social Security System) and Pag-IBIG Fund. That also means you’re eligible to borrow money from these institutions through their loan programs: the SSS Salary Loan and the Pag-IBIG Multi-Purpose Loan (MPL).
But here’s the real question—which loan is better for you? Should you go with SSS or Pag-IBIG? Let’s break it down.
SSS Salary Loan Overview
The SSS Salary Loan is designed for members who need quick financial help for personal use—whether for bills, tuition, or emergencies.
- Loan Amount: Equivalent to one month or two months of your average monthly salary credit (MSC).
- Eligibility: At least 36 months of contributions (with 6 posted in the last 12 months before filing).
- Interest Rate: 10% per year.
- Repayment Term: Up to 24 months.
- Other Deductions: 1% service fee upfront.
For a detailed step-by-step, I already wrote a guide here: How to File SSS Salary Loan.
Pag-IBIG MPL Overview
The Pag-IBIG Multi-Purpose Loan (MPL) is also for short-term financial needs—similar to SSS—but with slightly different terms.
- Loan Amount: Up to 90% of your Total Accumulated Value (TAV) (that’s your total contributions + employer share + dividends).
- Eligibility: At least 24 months of Pag-IBIG contributions (with one contribution in the last 6 months).
- Interest Rate: 10.5% per year.
- Repayment Term: Up to 36 months.
- Other Notes: Faster approval if you already have a Loyalty Card Plus.
Full guide here: Pag-IBIG MPL 2025 Guide.
SSS Salary Loan vs Pag-IBIG MPL: Side-by-Side Comparison
| Feature | SSS Salary Loan | Pag-IBIG MPL |
|---|---|---|
| Maximum Loan | 2x Monthly Salary Credit | Up to 90% of TAV |
| Interest Rate | 10% per year | 10.5% per year |
| Repayment Term | 24 months | 36 months |
| Eligibility | 36 months contributions (6 in last 12) | 24 months contributions (1 in last 6) |
| Processing Speed | Can take a few days | Usually faster, especially with Loyalty Card Plus |
| Service Fee | 1% | Deducted from proceeds (minimal) |
Which Loan Should You Get?
- Choose SSS Salary Loan if…
- Your TAV in Pag-IBIG is still small (meaning your MPL won’t be much).
- You want a slightly lower interest rate.
- You only need a small loan amount.
- Choose Pag-IBIG MPL if…
- You’ve been contributing for years and already built a big TAV.
- You want to borrow a higher amount (since 90% of TAV can be huge).
- You prefer a longer repayment term (up to 3 years).
Blogger’s Corner
Personally, I think the Pag-IBIG MPL is the better option if you’ve been a long-time member. The fact that you can loan up to 90% of your TAV makes it a powerful safety net in case of emergencies.
However, if you’re still new to the workforce and your Pag-IBIG contributions are small, the SSS Salary Loan might make more sense for now.
At the end of the day, both are useful tools—but only if you borrow responsibly. Remember, these loans are deducted straight from your payroll or contributions, so think twice before applying.