When considering the Social Security System (SSS) calamity loan, it’s important to be aware of the associated interest rates and fees to manage your financial planning effectively. Here’s a breakdown of the costs involved:
- Interest Rate: The SSS calamity loan carries an annual interest rate of 10%. This rate is applied to the outstanding balance of your loan until it is fully repaid. This means that over time, as you continue to make payments, the total amount of interest you will pay will accumulate based on this percentage.
- Pro-Rated Interest: At the time of loan disbursement, a pro-rated interest amount will be deducted from your loan proceeds. This interest covers the period from the date the loan is granted until the end of the month preceding your first scheduled amortization payment. Essentially, this upfront deduction ensures that your first payment reflects the interest accrued during this initial period.
- Late Payment Penalty: To encourage timely repayment, a penalty of 1% per month is imposed on any late payments. If a payment is delayed, you will be charged a full month’s penalty for each month your payment is overdue, which can quickly add up and increase the total cost of the loan.
- Service Fee: In addition to the interest and penalties, a service fee of 1% of the loan amount is also applied. This fee covers administrative costs associated with processing and managing your loan.
Being aware of these rates and fees will help you better manage your finances and avoid unnecessary costs. If you have any further questions or need assistance with your loan, it’s a good idea to contact SSS directly for detailed guidance.
CashLoanPH Changed status to publish 02/08/2024