As of July 2026, the TSP loan interest rate is 4.500%. If you take a TSP loan today, that’s the interest rate you would pay, and it’s fixed for the entire life of the loan. The interest isn’t a fee paid to a bank; it goes back into your own TSP account. See how TSP loans actually work for the full mechanics.
Next month’s TSP loan rate is already locked in: it will match July 2026’s G Fund rate, which is 4.500%, as you can see on the G Fund interest rate page. (By definition, the TSP loan rate is the same as the G Fund interest rate from the prior month.)
The chart and table below show the recent history of the TSP loan rate.
| Date | Interest Rate |
|---|---|
| July 2026 | 4.500% |
| June 2026 | 4.500% |
| May 2026 | 4.375% |
| April 2026 | 4.000% |
| March 2026 | 4.250% |
| February 2026 | 4.250% |
| January 2026 | 4.125% |
| December 2025 | 4.125% |
| November 2025 | 4.250% |
| October 2025 | 4.250% |
| September 2025 | 4.375% |
| August 2025 | 4.250% |
The TSP loan interest rate is currently 4.500%. It started 1995 at 8.000% and bottomed out at 0.625% in September 2020. The chart below compares it to what banks were charging for other kinds of borrowing over the same period:
The TSP loan rate is consistently lower than personal loans, auto loans, mortgages, and credit cards. Click the “Credit cards” button in the chart above to see just how much lower.
The chart above flatters a TSP loan more than it should. The interest you pay does go back into your own account, but while the loan is outstanding, the money you borrowed is out of the market and earning nothing. See our TSP loan calculator’s true-cost comparison for what that can add up to.
Use the TSP loan calculator to see your monthly payment, total interest, and payoff date — prefilled with today’s 4.500% interest rate.
Does my rate change after I take the loan?
No. Your rate is locked in when you request the loan and stays the same for its entire term, no matter what the G Fund rate does afterward.
Who receives the interest I pay?
You do. Every payment, principal and interest, goes back into your own TSP account.
Why is the TSP loan rate so low compared to other loans?
Because it isn’t a market-priced consumer rate. It’s simply set to the G Fund’s previous monthly interest rate, which is a yield on government securities, rather than priced for default risk the way a bank prices a personal loan or credit card.
Does the rate differ between a general purpose and a primary residence loan?
No. Both loan types use the same rate, the G Fund rate from the prior month. They differ in the fee and the repayment term, not the rate. See the two loan types for that.