RIT
Office of Budget

RIT Internal Loan Program

The RIT Internal Loan Program was developed as a loan program for departments within the University to assist in the purchase of needed capital equipment. While the funding for these purchases will be supported by the department's existing budget resources, a monthly repayment schedule spread over two to five years allows these purchases to be affordable. The loan term is no longer than five years with an assigned interest rate equal to the prime rate plus one half of a percent (0.5%). This program allows departments to stay current with equipment/technology needs and lessens the burden on scarce departmental capital funds.

The following procedure should be followed to participate in this program:

  1. Determine the capital need and work with an outside vendor to obtain the best quote of terms for the purchase. Capital is defined as equipment with a unit value of at least $1,500.
  2. Contact the Budget Office before the purchase to find out if funds are available for you to participating in the RIT Internal Loan Program. You will be asked the approximate amount of the loan, the number of years (2 to 5) that you want the loan for, the capital equipment account number to be reimbursed and the operating department number for repayment of the loan.
  3. If the vendor has a lease program, the lease quote should be forwarded to the Budget Office for review. After review, the Budget Office will recommend the best arrangement.
  4. If the RIT Internal Loan Program is recommended, the department will be directed to purchase the equipment from their capital equipment account.
  5. Once that purchase is confirmed with an expense transaction to the General Ledger, the Budget Office will reimburse the department's capital account for the exact amount of the expense.
  6. Once that purchase is confirmed with an expense transaction to the General Ledger, the Budget Office will reimburse the department's capital account for the exact amount of the expense.
  7. The department is then advised of the repayment terms and schedule. A standard monthly entry is established with the repayments coming from the department's operating budget object code 63180.

To take advantages of this program contact the Budget Office. This program will be limited by the availability of University resources for lending.

Prime rate website http://www.nfsn.com/library/prime.htm