Skip to main content

System Status: 

Internal Loan Program

Learn about the Internal Loan Program (ILP) administered within the Campus Budget Office.

  • The Internal Loan Program facilitates the authorized use of unrestricted campus cash balances for internal borrowings. 
  • Loans are effectively the use of UCSD’s working capital and therefore have an opportunity cost. This opportunity cost is passed on to the borrower in the form of an interest rate.
  • Internal loans have been used to fund construction and renovation projects, real estate acquisitions, equipment purchases and utilities projects, as well as provide operating/working capital for departments within the campus and health system.


More detailed information on Capital Equipment Financing can be found here.


  • Reserves and/or carryforward balances must typically be utilized first before a loan can be requested.
  • The Campus Treasury Office will provide a draft amortization table detailing the annual debt service amount and payback schedule, and will prepare the loan approval documents for signature from Vice Chancellor and/or Dean guaranteeing repayment.
  • Debt service reports are available in Cognos and provide campus customers with information on timing and amounts due for debt service (principal and interest).
  • OFC fund number 13042-Internal Banking Clearing Fund is used to track the loan liability and is typically excluded from most financial reporting at


Updated as of Nov 1, 2023

Term (years)


1 – 10


11 +


  • Interest rates are set annually based on a methodology that considers UCOP Internal Bank lending rates.
  • Interest rates are fixed for the life of the loan.
  • Debt service is recorded semi-annually: generally November (interest) and May (interest + principal).
  • Rates above do not apply to capital equipment loans.