Most qualified retirement plans, including pensions, allow employees to borrow against them and then repay the plan with interest, according to Investopedia. One benefit of taking a loan against a retirement account over other types of loans is that interest is repaid directly to the account.
A negative aspect of borrowing against a pension plan is that assets removed from the account are not available for tax-deferred financial growth on the earnings, Investopedia notes. Some retirement plans require that employees stop contributions for a time period after receiving a loan through the plan. Although federal law allows qualified plans to offer loans, plans are not required to offer them. Some plans include restrictions on loans, such as offering them only in hardship situations. Such plans may require that a borrower has no other alternative for securing a loan.