As part of this service, two new loan options will be available to 401(k), 403(b) and 457 Plan Sponsors: Installment Loans (IL’s) and Revolving Line of Credit Loans (RLOC’s). RLOCs are initiated using a VISA Loan Card.
According to a press release, both options provide for:
- Monthly Billing Statements for participant repayment,
- 24/7 Access to Loan information,
- Summary Loan info on participant quarterly statements via a link with the plan vendor,
- Loan repayment collections via ACH or check,
- Flexibility in repayment amounts above the IRS mandated minimum repayment schedule,
- Handling leaves of absence, defaults, and repayments post termination of employment, and
- No specific reason needed for the loan (enhancing the privacy of the transaction for the participant, and eliminating the need for participant falsification re: loan reason).
For more information, visit www.ERALOANS.com or contact Howard Phillips at 973-575-1100.