403(b) Plan Loans
The requested loan amount cannot be less than $1,500. In addition, the amount borrowed cannot exceed the lesser of:
- 100% of the total vested account balance if less than $10,000
- 50% of the total vested account balances, or
Members may have no more than two loans at a time. The interest rate for plan loans is fixed for the life of the loan at 1.0% above the rate of the MBA Income Fund. All loan payments are made by automatic bank draft on the 10th or 20th of each month. Consolidation of loans is allowed. The maximum term of a loan is 59 months (5 years) regardless of intended use.
Due to regulations issued by the U.S. Department of the Treasury, 403(b) plan loans issued after December 31, 2008 require employer verification of loan qualifications with the following exception: Your employer has a sole service provider agreement with Ministers Benefit Association, and has not had multiple service providers since 2004.
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