How to Apply for A Thrift Savings Plan Loan
You can apply for a Thrift Savings Plan loan in one of two ways:
1. Electronic Request on the TSP website
The website (www.tsp.gov) is the most
efficient way to request a loan. In the secure Account Access section (using
your Social Security number and your TSP PIN), you can complete the Loan
Application. Depending upon your retirement system coverage (FERS, CSRS,
or uniformed services), marital status, and type of loan, you will either be
able to complete the process on line, or you will be instructed to print out the
partially completed Loan Agreement. Complete the form and mail it to the TSP
(with any additional required information) before the expiration date at the top
of the agreement.
2. Paper Request - Loan Application Form
Send your
completed Loan Application to the TSP at the address on the form. Loan
Applications are available from the Forms & Publications section of the TSP
Web site, or from your agency or service. The TSP will then send you a Loan
Agreement with the terms of the loan. Complete the form and return it to the TSP
(with any additional required information) before the expiration date at the top
of the agreement.
If you are requesting a residential loan, you must also complete and submit
the residential Loan Documentation form to document the costs associated with
the purchase or construction of a primary residence.
If you do not return all of the required documents by the expiration date,
you will have to reapply.
The TSP will deduct a $50 fee from the proceeds of the loan to cover
administrative costs. Therefore, your loan amount will be reduced by the amount
of the fee. For example, if you requested a loan for $1,000, the TSP will deduct
the $50 fee, and the amount paid to you will be $950.
You can request that your loan be sent directly to your financial
in-stitution by electronic funds transfer (EFT). EFT is a safer method of
payment than issuing a check. Please verify the routing number of your financial
institution and your account number before you submit this information to the
TSP. EFT payments can be made only to financial institutions in the United
States.
If you do not request EFT, your loan will be paid to you by check. It will be
mailed to the address in your TSP account record.
If your address is not correct, contact your agency or service to have your
correct address submitted to the TSP before you apply for a loan.
Lost, stolen, damaged, or misdirected checks can take 6 weeks or longer to
replace.
If you make your loan request on the Web site AND you are able to complete
the process on line, your loan will generally be disbursed from the TSP within 3
business days. It may take an additional 3 to 5 business days to receive the
EFT. Mailed checks can take longer.
If you complete a paper Loan Agreement, it may take several weeks from the
time the TSP record keeper receives your completed Loan Agreement until your
loan is processed and you or your financial institution receives your loan.
Your loan may be less than the amount shown on your loan agreement. This can
occur if the value of your account has declined. However, as long as the amount
you can borrow is at least $1,000, you will still receive your loan in the
smaller amount. If this occurs, the repayment period will be the same, but your
loan payment amount will be reduced. You will receive a written
confirmation of the loan disbursement, which will show the correct payment
amount.
Source: TSPBK04 (6/06)
| 
Overview - CSRS
