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Loans: Auto
ELIGIBILITY
Applicant must be a contributing member of GERS for 5 or
more years and has a valid VI Driver's License.
INTEREST RATE
Interest rates are reviewed monthly and subject to change
based on the average margins of the local lending market in
conjunction with the minimum rate determined by the
actuarial studies.
MONTHLY INCOME Borrower's regular gross
monthly income evidenced by last 2 check stubs.
- Overtime Income will be factored in if the borrower
can provide evidence of consistency for at least the
last two years. (Recommend Income Tax Returns)
- Additional Income evidenced by check stubs 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 to be considered for
repaying the loan.)
- Rental Income evidenced by personal Income Tax
Returns. In cases where the rental income is not filed,
receipts for the last six months and a copy of a lease
agreement. We will factor in 75% of the rental income as
stable income.
- Child Support evidenced by a letter from Dept of
Justice, Child Paternity
CREDIT REPORT The credit report is the
primary factor used to evaluate the creditworthiness of the
borrower.
BANKRUPTCY No member who has filed
bankruptcy shall be approved for a loan from the System
without prior authorization of the US Trustee or the US
Bankruptcy Judge.
INSURANCE The vehicle must be comprehensively insured for
the full term of the loan.
CREDIT LIFE INSURANCE The retiree
loans are subject to credit life insurance that is at the
borrower's expense and factored in as part of the payment.
DEPOSIT A minimum of 25% deposit is
required by the borrower. Trade in and trade in value will
be evidenced on the sales invoice. The borrower must provide
GERS with evidence of funding source for deposit in the
absence of a trade in.
DEBT-TO-INCOME RATIO The maximum debt ratio
allowed for loans will be 60%.
APPROVAL Loans are approved/disapproved by a
Loan Committee and based on a full evaluation of the
applicant's outstanding debts as listed on his/her credit
report and other debts listed on the application.
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