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Auto Loan

Eligibility

An applicant must be a contributing member of GERS for 5 or more years or a retiree receiving an annuity and has a valid V.I. driver's license.

Interest Rate

For current interest rates, click here.

Repayment

Repayments of auto loans shall be over a maximum of 5 years but not beyond age 70 based on current credit life insurance availability. All repayments shall be deducted from the borrower’s wages in the same manner as his/her contributions to GERS.

Income

Applicant must provide evidence of regular gross income by submitting his last 2 paystubs. Overtime income will be factored in if there is evidence of consistency for at least the last two years. (Income Tax Returns are recommended).

The following sources of income may be submitted if necessary:

  • Additional income evidenced by paystubs and a job letter from the employer stating length of employment, hourly rate, and amount of hours worked weekly, biweekly or monthly. (Needed only if it is to be considered for repaying the loan.)
  • Rental income evidenced by personal income tax returns or rental receipts for the last six months and a copy of a valid rental agreement.   75% of the rental income will be factored in as stable income if this income is not filed on Tax Returns.
  • Child support income evidenced by a letter from the Department of Justice, Child Paternity Division.

Credit Report

The credit report is the primary factor used to evaluate the creditworthiness of the applicant.

Bankruptcy

No member who has filed bankruptcy or currently in bankruptcy shall be approved for a loan from GERS without prior written authorization from the US Trustee or the US Bankruptcy Judge. If the bankruptcy has been discharged evidence must be provided.

Insurance

The vehicle must be comprehensively insured for the full term of the loan. GERS must be listed on the policy as loss payee.

Credit Life Insurance

A portion of the loan will be subject to credit life insurance with the premium factored in as part of the payment. 

Deposit

A minimum of 25% deposit is required to be made by the applicant and must provide GERS evidence of the additional funding source.  Any trade-in value as evidenced on the sales invoice will be factored in as a portion of the 25% deposit.

Debt-to-Income Ratio

The maximum debt-to-income-ratio allowed for auto loans shall be 60%.

Approval

Loans are approved/disapproved by a Loan Committee and are based on a full evaluation of the applicant's outstanding debts as listed on his/her credit report and/or other debts listed on the application.

Limit

The  limit for an auto loan is $40,000. 

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