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Personal Loan Eligibility - Active Members

Eligibility

An applicant must be an active employee of the Government of the Virgin Islands and a contributing member of GERS for at least two years.

Interest Rates

Interest rates are reviewed monthly and are subject to change, based on the average margins of the local lending market and in conjunction with the minimum rate determined by our actuarial studies. For current interest rates, click here.

Repayment

Loan repayment shall be made over a maximum of 10 years but not beyond age 70 according to the following tiers provided below. The principal and interest shall be repaid in installments at least equal to 5% of the member’s gross wages and shall be deducted from the borrower’s wages in the same manner as his/her contributions to GERS are made. The borrower’s net wages after the loan payment have been deducted shall not be less than $25.00. 

 Tier

 Loan Amount

Term (years) 

 Months

 Pay Days

 1

 $1500 - $20,000

 5

 60

130 

 2

 $20,005 - $29,995

 7

 84

 182

 3

 $30,000 - $39,995

 8

 96

 208

 4

 $40,000 - $50,000

 10

 120

 260

Application

Each applicant must complete the GERS Personal Loan Application, produce a government issued picture identification, and paystubs for the last two consecutive pay periods when applying for a personal loan. Outstanding loans may be re-financed however a maximum of only two (2) loans may be granted in a given fiscal year. The loan processor will calculate the loan amount the member shall be eligible to borrow. The minimum amount disbursed is $1,000.00.

Loan Purposes

Members may take loans for any of the following reasons: (1) medical expenses; (2) dental expenses; (3) hospital expenses; (4) funeral expenses; (5) down payment for the purchase of real estate property or home; (6) repayment of refunds/prior service to GERS; (7) home repairs and/or renovations; (8) outstanding taxes debts; (9) educational expenses; (10) repayment of Loan Debt to GERS; and  (11) other personal expenses.

Application/Processing Fee

A non-refundable application processing fee of $25.00 will be deducted from the loan proceeds.

Documents

Approved applicants shall be required to execute a Promissory Note, a Disclosure Statement, an Assignment of Contributions, a Certificate of Insurance for the credit life insurance policy, and any other documents as determined by GERS.

Member Loans in Default

  1. Any personal loan that is in default shall be closed within sixty (60) days of the default of said loan. GERS shall provide ten (10) days written notice of the intent to close the loan.
  2. After closing any personal loan, the principal balance of the loan and accrued interest thereon shall be deducted from the member's accumulated contributions.

Bankruptcy

No member who has filed for 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 of written conformation must be provided.

Credit Life Insurance

Credit Life Insurance is required on all personal loans. This policy shall affect a payoff of the unpaid balance in the event of death, and allow the members' beneficiaries to receive their full death benefits. The payment of the premium shall be factored into the regular principal and interest payment throughout the term of the loan.

Declined Loans

Loans to members are declined in cases where: (1) members do not meet criteria for eligibility; (2) the member's take home wages are insufficient to accommodate the biweekly repayment amount for the amount of loan requested; (3) the member has been delinquent in payments less than sixty (60) days and cannot make the cash payment required to bring the loan current; (4) the amount to be disbursed after re-financing is less than $1,000.00; (5) the member is not in good standing with another GERS loan.

Processing Time

GERS makes every effort  to process and disburse all  personal loans  within ten (10) working days , except in cases where the member is an employee in an office outside of the Territory.

Credit Reporting

GERS may regularly report member loans to a Credit Reporting Agency. This will avoid GERS' loans from being overlooked by other lending institutions and eliminate the possibility of a member being over extended.