Credit for civil servants
Civil servants enjoy particularly favorable loan terms when taking out a loan. Banks generally assume that public sector employees have a secure, long-term job.
A regular income is therefore guaranteed and significantly reduces the risk of capital loss for the donor. For this reason, credit institutions are showing themselves with an extraordinarily low interest rate on a loan for civil servants.
Same benefits for civil servants and employees
With a term between 12 and 20 years, a loan for civil servants can amount to 20 times the monthly net income. As is customary for civil servants, employees must also take out life insurance in parallel to the loan taken out.
Life insurance serves as credit security for the credit institution and is also used to repay the borrowed amount at the end of the term. During the entire term of the loan, only the interest accrued is repaid by the borrower on a monthly basis with the loan amount remaining the same. During the repayment phase, additional costs in the form of premium payments for the life insurance taken out fall due.
What needs to be considered?
Prospective borrowers who want to apply for a loan for civil servants must use this loan to replace other existing loans. Banks do not provide for multiple payment obligations to be met at the same time. This requirement is intended to protect the borrower in the employment relationship from over-indebtedness.
Some providers of cheap loans do not provide Credit Bureau information. Up to which loan amount is waived this otherwise important proof of creditworthiness, a bank regulates itself.
Certain requirements must be met
In order to be able to take advantage of the financial benefits of a loan for public sector employees, the professional group must meet certain requirements: Before a loan of this type of public sector employee can be applied for, each applicant must demonstrate that an employment relationship has existed for at least three years, Years of training are not counted.
In this context, it should be mentioned that a loan can only be taken from the age of 18 without the consent of legal guardians. However, before a loan for civil servants is taken out, a comprehensive comparison of current financing offers should be carried out in advance.