In the Philippine social security framework, the SSS Salary Loan serves as a vital financial lifeline for employees and self-employed individuals. However, financial hardships often lead to "past due" status—where a borrower fails to meet the monthly amortization schedule.

For members who have finally settled these arrears, the primary question is how and when they can regain access to credit through a Loan Renewal.

1. The Core Principle of Loan Renewal

Under Social Security System (SSS) guidelines, a member does not need to wait for a loan to be fully liquidated to apply for a new one, provided they meet the "one-half (1/2)" rule.

Rule of 50%: You may renew a salary loan only after you have paid at least 50% of the original principal amount and at least 50% of the loan term has lapsed.
The "Past Due" Exception: If your loan was past due, the 50% threshold still applies, but the mechanics of "paying off" the arrears change how the balance is calculated for your next application.

2. Impact of Delinquency on Eligibility

When a loan becomes delinquent, it accumulates penalties (1% per month) and compounded interest.

The Net Proceeds Catch: When you renew a loan, the SSS automatically deducts the outstanding balance of the previous loan from the proceeds of the new loan.
The Obstacle: If your past due balances (principal + interest + penalties) exceed the maximum loan amount you are currently qualified for, the system will reject the renewal. You cannot "borrow" your way out of a debt that is larger than your credit limit.

3. Steps to Restore Eligibility After Default

If you have recently paid off your past due balances, you must navigate the following legal and administrative steps to ensure the system recognizes your eligibility:

A. Verification of Payment Posting

Payment posting is not always instantaneous. If you paid via a third-party partner (Bayad Center, banks, etc.), it may take 3 to 5 working days for the payment to reflect in the SSS database.

Note: Always verify your "Member Loan Sub-System" status via the My.SSS Portal before applying. If the status still reflects "Past Due," the automated application will be denied.

B. The "Loan Restructuring" Alternative

If the past due balance is too high to pay in one lump sum, the SSS occasionally offers a Loan Restructuring Program (LRP) or the Consolidated Loan Program (Conso-Loan).

Conso-Loan: This merges your past due principal and interest into one new loan, often waiving the accumulated penalties.
Effect on Renewal: Once you enter a Conso-Loan, you must again meet the 50% payment threshold of this new consolidated amount before you can apply for another renewal.

4. Current Eligibility Requirements (2024-2026 Standards)

To successfully renew after settling a past due account, the member must still meet the standard SSS criteria:

Posted Contributions: At least 36 monthly contributions, six of which must be within the last 12 months prior to the month of filing.
Employer Certification: For employed members, the employer must be updated in their SSS premium payments and must "certify" the loan via the Employer SSS Portal.
No Fraudulent Activity: The member must not have been disqualified due to fraud against the SSS.
Finality of Settlement: The "Past Due" tag must be cleared. If you paid the balance in full, your outstanding balance should reflect zero or a balance lower than the 50% principal threshold.

5. Calculation of the New Loan Amount

Upon renewal, the SSS follows this formula:

If your past due interest and penalties were significant, your "Net Proceeds" might be surprisingly low. Under Philippine law and SSS policy, the SSS prioritizes the total liquidation of the old debt before releasing any fresh capital to the member.

6. The Digital Requirement

As of current SSS mandates, all salary loan applications—including renewals after settling arrears—must be filed electronically.

Members must have a registered account on the My.SSS Portal.
Members must have a generated Payment Reference Number (PRN) for any arrears payments to ensure they are credited to the correct loan account.
A Disbursement Account Enrollment (DAEM) is required (e.g., UnionBank, GCash, or Maya) to receive the funds.

Summary Table: Renewal Readiness

Status	Action Required	Renewal Eligibility
Fully Paid Past Due	Wait for posting (3-5 days)	Immediate (if 36 months contributions met)
Partially Paid Past Due	Reach 50% of Principal	Eligible (Balance deducted from new loan)
Under Restructuring	Terms of LRP agreement	After 50% of Restructured Loan is paid

Failure to settle the "Past Due" status results in the continuous accrual of 1% monthly penalties, which can eventually lead to the SSS deducting the total debt from future Sickness, Maternity, or Retirement benefits via the "Member Loan Offsetting" policy.