Welcome
Who Is ERAloans?
ERAloans makes available an Equity Retirement Account (a line of credit in a retirement account) to retirement plan participants. Using affiliations with a retirement plan recordkeeper and a credit card issuer and processor, ERAloans has created an alternative system for the initiation, processing and administration of participant loans in retirement plans. The system brings positive value not only to participants, but also to plan sponsors, recordkeepers and third party administrators.
The most important aspects of this alternative system are these:
1) Replacing high interest cost credit card debt with a loan from a retirement account, where interest at the prime rate is paid by the borrowing participant to his own account. Even with the fees involved for administration of the loan, the borrowing participant frees up debt service and redirects some or all of it to additional retirement savings.
2) Repayment of a line of credit debt may be accomplished after termination of employment, unlike traditional systems’ requiring full payment of a loan’s outstanding balance at termination of employment (or payment of tax on the outstanding balance if full repayment cannot be satisfied).
3) Complete privacy for the transaction. There is no reason needed for the line of credit debts, and therefore no need to reveal financial duress to an employer or a committee of the employer.
4) Monthly billing for repayment, where, unlike payroll deduction repayment, variable repayments are acceptable, as are payments after termination of employment.