How 403(b) loans work

Following is a summary of the 403(b) Plan's loan provisions. For additional information about the loan program, see the Summary Plan Description available at UCnet. Log in to NetBenefits or call Fidelity at 1-866-682-7787 to apply.

Loan types

General Purpose or Principal Residence.

Processing time (from completion of loan request)

Loan check usually issued in three to five business days. Please allow additional time for the check to reach you by mail. You may also set up electronic fund transfer (EFT).

Number of loans

You may receive only one General Purpose loan and one Principal Residence loan in a 12-month period. You may have only one General Purpose and one Principal Residence loan outstanding at any given time.

New loan

After an existing loan is paid off, you must wait seven calendar days before you can apply for a new loan.

Minimum required balance in 403(b) Plan


Maximum available loan amount

Based on combined balance in 403(b), DC, and 457(b) plans.1

Available source for loan

Loans are available from UC Fund Menu balances. Call Fidelity® Retirement Services to choose the funds from which to take your loan. If you do not choose the funds, the loan will be taken pro rata across all funds in your account.

Maximum total loan amount


Minimum monthly repayment amount


Repayment terms

Minimum: 12 months.
Maximum: 60 months for General Purpose; 180 months for Principal Residence.

Loan repayments

For active employees: Loan repayments are directed to your current investment election via payroll deduction.
After separation: Loan repayments are available through Electronic Funds Transfer (EFT) as long as the 403(b) Plan remains open with an eligible balance.

Interest rate for the term of the loan (repaid to participant)

Prime rate (as of the first business day of the month that the loan is requested) plus 1%.2


Initiation fee: $35.
Servicing fee:
$15 per year.3

Promissory note/Promise to pay

By accepting the loan proceeds, you agree to the loan and repayment terms.