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Loans – Overview

You can request a loan against your account, which you have to repay with interest. To calculate the size loan for which you are eligible, the interest rate for the loan and the repayment schedule, click here. To use this
calculator, you will need to log into your MMBB investment account.

A check for your loan amount will be mailed within two business days from the processing date.

You can request a loan, if you:

  • Have an account balance that will support a minimum loan amount of $1000.
  • Have no more than one other outstanding loan through your Retirement Only Plan account. 
(You may have one other loan from your other MMBB accounts as long as the combined loan amounts do not exceed $50,000.) Within each plan, no more than one loan may be taken in any rolling 12 month period.

There are two kinds of loans available, depending on the intended use of the loan:

  • General Purpose Loans must be repaid within 60 months.
  • Primary Residence Loans must be repaid within 120 months.

The differences between the two are mentioned below, where applicable.

Prior to requesting a loan you should review your situation with a Senior Benefits Specialist

Loans versus Withdrawals

Determining if a loan or a withdrawal is the right course of action for you depends upon your personal circumstances. The following information can help you determine the option that work best for you.

Loan Withdrawal
You don’t pay taxes if repayments stay on schedule Usually, you will have to pay taxes
You have to repay it, plus interest You cannot repay it
Your plan balance is temporarily reduced Your plan balance is permanently reduced
You can continue to participate in the plan Certain withdrawals cause a 6-month suspension of contributions

If you have any other questions, we suggest that you contact a Senior Benefits Specialist to help you decide which course of action best fits your personal circumstances.

Allowable Loan Amounts

The maximum amount you may borrow at one time is 20% of your Retirement Only Plan account to a maximum of $50,000. If you have a loan against your Comprehensive Plan account or your The Annuity Supplement account, the total loan amounts cannot exceed $50,000. The calculation also factors in the highest outstanding balances over the previous 12 months.

Interest Rate for Loans

The interest rate for all new loans will be the Prime Rate published in the Wall Street Journal on the first business day of the month plus 1%.

The interest rate used when you initiate your loan is fixed for the duration of the loan. Any change in interest rates only affects future loans.

Note: Interest is not tax deductible.

Loan Repayments

Repayment begins approximately 45-60 days after the loan is processed. Because you are borrowing against your investment account, your repayment—including interest—is deposited back into your investment account. Your loan repayments are invested on the basis of your investment election for current contributions.


If you are interested in paying the balance of your loan early, you can prepay the full amount of your outstanding balance at any time. Partial prepayments are not allowed. To find out the balance on your loan and request a loan payoff amount, call the Xerox toll-free automated Voice Response System, 877-626-4032, and speak to a representative.

You can make a prepayment using a check or money order made payable to “MMBB Financial Services”. The last four digits of your Social Security Number, the words “Loan Prepayment” and the name of the Plan, must also be on the check or money order. Mail the payment to:

The Ministers and Missionaries Benefit Board
Department AT 40074
Atlanta, GA 31192-0074

Loans and Unpaid Leaves

Loan repayments may be suspended for up to one year if a members is on a leave of absence. The suspension period may be greater than one year if the leave of absence is due to military service. If you go on an unpaid family leave for no more than 12 weeks, your loan repayments will be suspended until you return to active employment. You have the option to continue making payments on your loan, but, if you miss a payment, interest will be accrued. If your leave extends beyond one year, you must begin making payments or your loan may go into default.

Once you return from your leave, it may be necessary for you to make additional payments to cover interest accrued during your leave or to ensure that your loan is paid off within its original schedule. Failure to do so may result in the default of your loan.

For questions on loans, call 877-626-4032.

Loans and Voluntary Termination

You can continue to make loan repayments after you terminate employment. You may repay the remaining balance when you terminate employment through the plan’s loan prepayment procedures.

Defaulting a Loan

A loan is considered to be in default if six scheduled payments are missed. If the loan goes into default, your outstanding loan balance will be reported to the IRS as a plan deemed distribution and you may incur both taxes and penalties on the outstanding amount.

You are not eligible to take a new loan until you repay a loan on which you have defaulted. A member who has annuitized a portion of their Retirement Only Plan account is eligible for a loan even if prior loans were defaulted.

Requesting a Loan

Prior to requesting a loan you should review your situation with a Senior Benefits Specialist.

You can apply for a loan by logging into your account at Once you log in:

  • Go to the Actions section
  • Select either General Purpose Loan or Primary Residence Loan.
  • Specify the loan amount and loan repayment period (up to 60 months for a General Purpose Loan and up to 120 months for a Primary Residence Loan). Payments are always made monthly. Federal law requires that the monthly payment exactly match the amount on your original amortization schedule. This amount also appears on your monthly payment invoice. Checks for different amounts will be returned.

If your request for a General Purpose Loan is made prior to 4 p.m. Eastern time on any regular business day, the loan will be processed that day and a check will be forwarded to the address we have on file within two to three business days following processing. If your loan request is made after 4 p.m. Eastern time, the loan will be processed the next business day.

If you request a Primary Residence Loan, a loan package will be mailed to you at the address on file within three to five business days. Return the completed forms to the address shown on the forms. Loan requests are processed within 24 hours after receipt of the signed package. A check will be mailed to the address on file two to three business days following processing.

Loan Processing Fee

There is no processing fee for a loan from the Retirement Plan or any other Plan you may have available to you.

Deleting or Changing a Loan Request

You can only change or delete a loan request before 4 p.m. Eastern time of the business day that you requested the loan.

  • To change or delete general purpose loan, go back to the Action page and select General Purpose Loan.
  • To change your loan request, delete your original request and re-enter the new loan.
  • To cancel the loan, do not re-enter the request after you have canceled it.

If you have requested a Primary Residence Loan and decide that you do not wish to complete the loan, do not return the loan package. Loan packages automatically expire 45 days from the date of request.

If you return a loan check after it has been issued against your account, the funds will be returned to your account. However the value of the loan check issued will factor into the calculation should you request a new loan within the next twelve months. This could reduce the amount available for you to borrow.

Tax Consequences in Case of Default

You will not face any tax consequences after receiving a loan as long as you continue to make the required loan repayments on time.

If you default on your loan, the outstanding balance will be deemed a distribution from the plan and will be taxable to the extent appropriate.

You may also incur a penalty on the distribution amount.