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Personal Loans: Retiree Members
Objective
The primary purpose of the Retiree Loan Program is to
grant eligible members personal loans in an amount of not
more than $10,000.00.
ELIGIBILITY
Determine that the borrower is a retired government
service employee on the retiree payroll and receiving an
annuity check (not a survivor's benefit). The retiree is not
eligible if he/she has an existing personal loan with the
System.
INTEREST RATE
Be mindful that the interest rate is subject to change on
a monthly basis.
MONTHLY INCOME
All verifiable income can be used to determine the
borrower's ability for repayment of the loan. This can
include the following.
- Borrower's annuity income as evidenced by last 2 semi
monthly annuity check stubs. Last 2 Social Security
earning statements or a letter from Social Security
Administration.
- Additional Income shall be evidenced by check stubs
and a job letter from the employer. Job letter shall
state length of employment, hourly rate, and amount of
hours worked weekly, biweekly or monthly.
- Rental Income shall be evidenced by a copy of personal
Income Tax Return. 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.
BANKRUPTCY
No retiree 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.
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.
DEBT-TO-INCOME RATIO
As a guideline, 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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