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.
  • 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

  • $1,000

Maximum available loan amount

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

Available source for loan

  • UC Fund Menu. 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

  • $50,000

Minimum monthly repayment amount

  • $50

Repayment term

  • 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.

Be sure you understand the plan guidelines and impact of taking a loan before initiating a loan from your plan account.

1 If your combined balance in the 403(b) Plan, DC Plan, and 457(b) Plan is $20,000 or less, your maximum loan amount is $10,000 or 100% of your 403(b) Plan balance, whichever is less. If your combined balance in these three plans is more than $20,000, your maximum loan amount is 50% of your combined balance up to $50,000 or 100% of your 403(b) Plan balance, whichever is less.Please note that if you have had an outstanding loan balance in one of these plans in the prior 12 months, the $50,000 is reduced by the highest loan balance during that period.

2 For example, the Prime Rate on January 1, 2016, was 3.5%, which results in a loan interest rate of 4.5%.

3 Loan servicing fees are applied after payments are credited.

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