Steelers
Sep 9 1998, 03:14 PM
What is the policy guidelines your company uses to dispense loans to active participants? Any dollar limits, limits on how many, etc?
robin s vatalaro
Sep 19 1998, 01:33 AM
I see it all across the board.
Many plans allow an unlimited number of loans, many allow only one. Allowing only one makes the plan far easier to administer. I handle a plan where some participants have five loans outstanding at once. It is very difficult for the client's payroll people to not overpay on one loan, start up the payments for next loan on the correct date, apply the correct payments to the correct loans, etc. Allowing only one at a time simplifies the process greatly.
Most plans I see have a minimum loan request of $1,000, to prevent participants from constantly requesting small dollar amounts.
Alan Simpson
Sep 22 1998, 06:16 PM
We are working towards having all plans with a minimum loan of $1,000 and no more than one loan outstanding at a time.
It is also required that payments be made by payroll deduction.
[This message has been edited by Alan Simpson (edited 09-22-98).]