According to the U.S. Government Publishing Office, the TSP-21-G is the loan agreement form individuals sign when they borrow against their Thrift Savings Plan accounts. According to Zacks Investment Research, TSP loans are exclusive to active-duty military and federal employees. Investors who are retired or on extended leave are ineligible.
Zacks Investment Research states that members can only take out one general purpose loan at a time and must wait 60 days after taking out a previous loan to qualify. Borrowers with outstanding or recently paid home loans are not ineligible for general purpose loans. Members can borrow between $1,000 and $50,000 as long as the amount does not exceed the sum of their contributions and returns from the previous year less the highest amount still outstanding on any previous TSP loans.
On the Thrift Savings Plan website, or by submitting Form TSP-20, participants can apply for a personal loan. Loan lengths range between one and five years with a fixed interest rate. Members of the armed forces on active duty can reduce their rate to 6 percent by notifying plan administrators of the start and end dates of their service. According to the U.S. Government Publishing Office, borrowers must start repaying their loans within 60 days after the date of issuance.
