In fact, the credit industry keeps hearing about civil servants’ credit, which naturally raises some expectations among the servants of the state. However, it is often not clear exactly what is behind this name and how it may subsequently be possible to benefit from it for yourself. For this reason, it can be interesting to get to the bottom of this question in more detail.
A civil servant loan is a form of installment loan that is only issued to civil servants. Basically, it hardly differs from a normal offer, because only the conditions can partially tell where the differences are. Because it is very important for the lender to have enough collateral with the borrower, this type of loan was created. As is well known, civil servants have the advantage of very high job security on their own side.
As a result, the chance that the loan could no longer be repaid is very small. On the other hand, this can of course also refer to the pension in older age, which makes it possible to service a loan with a high level of security.
In order to be able to take out a civil servant loan, you first have to have achieved this status yourself. On the other hand, it is of course also possible to secure such a loan at the same level as usual during training. The lenders will then consider the profession that could be taken, for example, at the end of a successful degree.
All in all, this is also a more than successful way to achieve your own goals. As a result, the conditions on which the loan is then offered are generally much more pleasant than is the case elsewhere.
Especially with larger sums, a lot of money can be saved in terms of repayment, which is why it is definitely worth keeping an eye on this topic. As a rule, not only is the interest payable lower, because at the same time there are fair framework conditions. These also make it possible, for example, to give yourself the chance to pay a slightly higher amount at once when tapping into an additional source of money in order to reduce costs even further.
An overview of which of the offers are now the most attractive when it comes to a civil servant loan can also be obtained on the Internet.
An example can be used to illustrate very well what the taking out of such a loan could look like. For this, an amount of 40,000 USD is envisaged, which already counts in the somewhat higher range. With a repayment that extends over a period of exactly seven years, a monthly payment of around USD 528 would be due if the effective interest rate was 2.99 percent per year. The additional expenses would amount to around 4,000 USD within the scope of a valid repayment, which is definitely a fair matter in view of the high amount.
Anyone who has the status of a civil servant can clearly use this when taking out a loan for their own purposes . So it is definitely worth taking a look at it in advance.
A civil servant loan is generally understood and, as the name suggests, is a type of loan that can be given to civil servants by various credit institutions. Such a loan is an ordinary installment loan, but usually offers very good conditions for the employees of the state. In addition to exceptionally long terms and high loan amounts, these are above all the low interest rates.
However, the term civil servant loan is not protected by German law and can therefore be offered by donors as a very different product and on different terms. Due to the fact that the job of an official is considered to be secure and practically non-cancellable, they bring a high level of security for the credit institutions as customers.
From the bank’s point of view, the risk of an official becoming insolvent is much lower than that of other employees. This also results in the reason that the group of civil servants can mostly enjoy a relatively low interest rate, because they are secure customers for the lenders and there is therefore quite high competition among the lenders to win them as customers.
The target group for this type of loan are all civil servants and civil servants. Typical borrowers for such loans are, for example, civil servants, police officers, civil servant teachers, professional soldiers, judges, judicial officers, postal officials or civil servant academics, such as university or university professors. There is no real restriction on the type of loan.
It depends primarily on the profession of the borrower and is completely variable in the amount, the interest and the agreement on the duration and amount of the repayment rates and, as with any other loan, also a matter of negotiation between the borrower and the lender. In practice, consumer loans in Germany are mainly advertised as civil servant loans.
It should also be noted that the civil servant loan also exists in addition to the civil servant loan. In contrast to a civil servant loan, this represents final financing and is taken up in combination with a capital life or pension insurance. Customers do not pay the money back directly to the bank, but pay it to the insurance company. With this sum, the debt is then repaid at the end of the term. The interest, however, is paid to the bank.
The main benefit is that the borrower’s family is covered in an emergency. This financing option offers security thanks to life insurance, but it is usually noticeably more expensive for relatives.