The TSP-21-G form is the loan agreement form individuals sign when they borrow against their Thrift Savings Plan accounts, according to the U.S. Government Publishing Office. TSP loans are only available to current military and federal employees, explains Zacks Investment Research. Retired investors and individuals on extended leave are not eligible.Continue Reading
Members can only take out one general purpose loan at a time and must wait 60 days after taking out a prior loan to qualify, explains Zacks Investment Research. Outstanding or recently paid residential loans do not disqualify borrowers from taking out general purpose loans. Members can borrow from $1,000 to $50,000 as long as the amount does not exceed the total amount of the members��� contributions and returns minus the highest amount of money still owed on any previous TSP loans from the past year.
Participants can apply for a personal loan on the Thrift Savings Plan website or by submitting Form TSP-20. Loan terms range from one to five years with a fixed rate of interest. Active-duty service members can reduce their rate to 6 percent by notifying plan record keepers of the beginning and end dates of their service. Borrowers must begin to repay their loans within 60 days of the issuing date, states the U.S. Government Publishing Office.Learn more about Personal Loans