Officials enjoy a special status and that is why some providers also offer you low interest rates on a loan. The loan for civil servants consists of a combination of installment loan and life insurance. A civil servant loan is considered a special loan because it differs from normal processing.
Civil servant status is always a high level of security when it comes to lending and this gives the civil servant very good conditions. The creditworthiness of an official is usually always good, unless he has a negative credit check entry and therefore a lot of other credit obligations.
Who is an official loan for?
Unless the borrowers are too old, the civil servant loan is only granted to civil servants and civil servants. During the credit period, the official must then pay the life insurance premiums and the interest on the loan.
The banks offer a loan for civil servants in the first place because they have a secure income. The interest rates cannot then be changed and are fixed, which is why there is a certain degree of planning certainty. A civil servant can claim the loan for civil servants on a trial basis or for life.
Is there a maximum loan amount and a fixed term for both loans for civil servants?
The amount of the loan depends on the borrower’s net income. The term of the loan can range from twelve to twenty years. The loan amount can be 20 to even 24 times the net income.
For life insurance, the amount of the premium depends on the age of entry. At the end of the life insurance term, the loan is then automatically repaid. The borrower receives the surplus shares or the income earned.
What can an official loan be used for?
The civil servant loan is for free use and is not earmarked. So there are no mandatory restrictions on the use of the loan. However, there is a requirement that the loan may be used to replace existing, existing credit.
A civil servant loan is therefore often a cheap option to replace a car loan or an installment loan. If there are difficulties with the repayment of the civil service loan, there is the possibility of a garnishment.
Does a borrower have to provide collateral for the civil service loan?
There is security with an official because the income is secure and it cannot be terminated. As a rule, the amount of income is also sufficient. The loan for civil servants is only rejected if there is a negative credit check entry.
Even if a garnishment is already taking place, the loan is rejected. The collateral is income and civil status.