As a TSP participant, you’re allowed to borrow from your TSP account. While you might be tempted to take a TSP loan, you should consider the effects that taking out a loan will have on your retirement savings. It might cost you more than you think.
When you take a TSP loan, you deplete your balance. That means you miss out on the compound earnings from those savings had they remained in your account. Not only that, you must repay your loan with interest and the loan fee is deducted from the total loan amount.
Remember: The purpose of contributing to the TSP is to provide you with income in retirement, so it pays to think twice before you take a TSP loan.
The interest rate for new loans is --%.