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Frequently Asked Questions about Loans

Other FAQ pages: Benefits FAQ - GERS FAQ

Loans Frequently Asked Questions

As a retiree with a personal loan, can I refinance my loan?

Yes. You can refinance your existing loan if your balance has been reduced to at least 50% or less of the original loan amount.

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What is the maximum loan amount can I for apply to purchase land?

The maximum loan amount for land purchase is $50,000.00.

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How much money can I borrow from my retirement fund?

You can borrow up to a maximum of 75% of your total contributions. However, the loan amount can not be greater than $50,000.00.

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Can I borrow from GERS to purchase a vehicle?

Yes. You may borrow up to 75% of the cost of the vehicle but the loan amount can not be greater than $40,000.00.

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I currently work for the Government of the Virgin Islands. When will I be eligible to apply for a personal loan?

Active members are eligible to apply for a personal loan after they have paid into GERS for two (2)  years.

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If I am eligible for a personal loan will a credit check be conducted?

Applications from active members do not require a credit check. However, credit check are required for applications from retirees.

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Is there an application fee, and how is it paid?

The application fee for active members is $25.00 and it is deducted from the loan amount.  Retirees are not charged an application fee, but a $20.00 credit report fee must be paid by check or money order at the time the loan application is submitted.

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How are the payments for the loan made?

Loan payments are deducted on a biweekly basis from your wages after taxes.  Loan payments for retirees are deducted from their semi-monthly annuity earnings after taxes.  

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If my take home pay cannot cover the loan payments, can I make my payments in person

No. The Virgin Islands Code specifies that loan re-payments must be withheld by way of salary deduction.

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How often can I apply for a personal loan?

You can apply for a personal loan twice within a fiscal year. The fiscal year begins October 1 and ends September 30.

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Is there insurance that will pay off the loan balance if I die?

Yes. All personal loans to active members and retirees are insured in the event of death. Insurance premium for personal loans from GERS are built into loan payments.  However if your loan is delinquent for three (3) months or more said insurance will be cancelled and your loan will not be insured. Additionally, please know that if death is due to pre-existing condition(s) the loan repayment insurance does not cover any outstanding balance due and owing at the time of death.

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What will happen if I quit my job?

Once employment is terminated with the government, all outstanding balances become due and owing at that time. If no payment is made after 60 days of delinquency, the total outstanding loan amount plus interest will be deducted from your contributions.

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If I quit my job can I make monthly payments directly to your office?

Yes.  You will need to contact us to make this arrangement, since the payments will have to be modified from biweekly to monthly.

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Can I make additional payments on my loan?

Yes.  Additional payments can be made by check or money order or by increasing the amount of your payroll deductions.

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Will you finance the purchase of a used car?

No.  GERS will only finance for the purchase of a new car.

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I am not a licensed driver, but my husband is. Can I get a car loan?

No.  The applicant must be a licensed driver and be able to secure full comprehensive insurance for the car.

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I retired two years ago with a personal loan. Can I also get a retiree personal loan for $10,000.00?

No.  No member, active or retired shall have two personal loans outstanding at the same time.  As a retioree, you may refinance the existing personal loan once the outstanding loan balance is $5,000.00 or less.

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Can I apply for a personal loan after I have filed my retirement documents even though I will still be on the job?

No.  It is recommended that you check your loan availability prior to retirement. 

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As an active member, what is the minimum amount I can receive when I refinance my personal loan?

Your net loan proceeds cannot be less than $1,000.00.

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How do I become eligible for a mortgage loan?

In order for an applicant to be eligible for a mortgage you must be an active employee of the Government of the Virgin Islands, and a contributing member of GERS for at least five (5) years, or a retiree receiving an annuity.

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For what purposes do you give mortgage loans?

GERS grants mortgage loans to purchase land, purchase homes, construct new homes or renovate existing homes.

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Do you collect escrow funds?

Yes. Escrow funds are mandatory on all mortgages so that property taxes and home owners insurance premiums can be paid when they become due and owing.

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What is the maximum loan amount that I can borrow?

It depends on the purpose of the loan. However the maximum amount for land purchase is $50,000.00. And the maximum amount for  purchase or constructing  of a new home is $350,000.00.

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Can I borrow to purchase a home on the US mainland?

No. All loans must be for the purchase of properties and or homes located in the U.S. Virgin Islands.

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What is the term of your mortgage loans?

Land loans are payable over a maximum of 15 years. Other types of mortgage loans are payable over 30 years. However, all mortgages must be repaid by age 70.

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I have a mortgage with GERS. Can I insure the property against fire only?

 No. Your insurance policy for the property must cover all risks due to natural disasters including but not limited to earthquake, fire and windstorm, and must list GERS as the loss payee.

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What will happen if I do not fully insure my property?

GERS will put forced place insurance on the property if you are not adequately insured.

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What is forced place insurance?

Forced place insurance is insurance coverage that the lender places on a property if the borrower refuses to get adequate insurance. It is at the borrower's expense and may cost more than regular homeowner's insurance. The policy that GERS force places will only cover GERS should a claim for loss be filed.

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Can I purchase a car off island?

No.  Cars must be purchased from a licensed car dealer in the U.S. Virgin Islands.

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