Complexities in 401k Loan Processing

The Problem

Managing 401k Loans is a complex and largely manual process that presents a host of challenges to plan administrators.

Each retirement plan has its own criteria for loans
Multiple different types of loans – hardship, general-purpose, and home purchase loans – need to be managed – each with unique regulatory requirements
The volume of documentation involved is huge
Managing loan requests and repayments is often done manually, making the process inefficient and error-prone
The administrator needs to determine interest rates
Meeting compliance requirements and accurately reporting on loan statuses and historical records is a constant challenge
Ineffective communication with participants on loan terms and statuses causes dissatisfaction

How Can Congruent Help?

CORE Loans from Congruent automates and streamlines 401k loan processing with its powerful tools and ease of use.

Customizable Loan Setup with Multiple Types

With CORE Loans, administrators can specify loan types, set maximum loans per participant, and configure loan amounts, fees, terms, and many other rules directly in the plan setup.

Automated Loan Processing Workflow

CORE Loans automates most of the steps in the lifecycle from loan request through approvals to disbursement and ongoing maintenance.

Automated Computations

CORE Loans provides daily and dynamic computation of interest rates, repayment provisions outside of payroll, re-financing, re-amortization, loan suspension, spousal consent, promissory notes, and more.

Digital Documentation & E-signatures

Participants can digitally sign the required documents directly within CORE Loans.

Comprehensive Compliance & Reporting

CORE Loans provides automated compliance checks as well as advanced reporting tools for real-time insights into loan status and repayment trends.

Robust Security

E-signature and GIACT (for AML) integrations make it easy to keep your data secure and compliant. CORE Loans also provides a secure digital repository for all documents related to loans.

Seamless Integrations

The solution easily integrates with your existing loan application portal, recordkeeping system, document management system, disbursement system, and communication system.

Effective Communication

CORE Loans provides automated notifications and a self-service portal to keep participants well-informed about loan policies and updates.

Why Choose CORE Loans?

Speed with Accuracy

Eliminate complex manual processing and complete loan processing in hours instead of days with zero errors.

Efficient, Guided Self-Service

Enable participants to initiate loan requests themselves, aided by CORE Loans’ intelligent loan calculator and clear guidance through the process.

Improved Participant Satisfaction

Delight participants with fast processing times, simple self-service, and clear communication.

Reduced Operating Costs

Reduce the time, effort, and therefore, administrator capacity required to manage loan processing.