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)