Summary of Provisions | |
|---|---|
| Loan Name | General Purpose and Primary Residence |
| Processing time (from completion of loan request) | Loan check usually issued in 3-5 business days |
| Minimum required balance in 403(b) Plan | $1,000 |
| Maximum loan amount | $50,000 |
| Minimum repayment term | 12 months |
| Maximum repayment term | 60 months for General Purpose; 180 months for Primary Residence |
| Maximum available loan amount* | Based on combined balance in |
| Interest rate for the term of the loan (repaid to participant) | Prime rate (as of the first business day of the month that the loan is requested) + 1%** |
| Initiation fee | $35 |
| Servicing fee | $15 per year or $3.75 per quarter |
| Promissory note | Qualified endorsement |
| Available source for loan | UC Core Funds, Fidelity or Calvert mutual funds |
| Loan repayments | Directed to the participant's current investment election |
| Repayment after separation | Available for all separating employees through Electronic Funds Transfer (EFT) |
| Quarterly loan statements | Provided as part of the UC Retirement Savings Program quarterly statement |
*Maximum available loan is 50% of combined balance in 403(b) Plan, DC Plan and 457(b) Plan, (including UC Core Funds and Fidelity and Calvert mutual funds), up to $50,000 or 100% of 403(b) Plan balance (whichever is less).
**The Prime Rate on August 1, 2009, was 3.25%. This means that loans issued during this month would carry an interest rate of 4.25%. For example, a $3,000 loan for 60 months at 4.25% has a monthly payment of $55.59.
Campus Human Resources, Benefits Services
Phone: (310) 794-0830 | Fax: (310) 794-0835
