If an official wishes to take out a loan, he has the option of resorting to a civil servant’s loan. These loans offer cheaper interest rates than the conventional installment loans, a longer term and also larger sums than would normally be possible. These exceptional conditions for state employees, also apply to retired civil servants.
Special status for civil servants
The civil service loan is quite simply explained by the special status of civil servants. Anyone who is in the civil service and civil servants, is considered almost non-terminable and there is no risk of bankrupting employers. The German state is regarded as the most stable employer for the banks, which means that a civil servant is welcome as a borrower. These guarantees allow banks to offer civil service loans with extremely high credit balances for long terms and on favorable terms.
Especially in the current low-interest phase, the civil service loan is extremely worthwhile. The civil servant can now borrow large amounts at extremely favorable conditions, and then benefits from interest rate fixation for decades.
An official gets easily from the banks a loan with a term of 20 years. This generous loan period leads to a worry-free planning security in the civil service budget. In the normal employer, the fluctuation of the possible loan amount is extreme. The bank starts from the net salary of the borrower and then offers the 6 to 25 times the sum as a loan amount (depending on remaining creditworthiness). If an official decides to use a civil servant’s loan, the possible loan amount is between 20 and 25 times the net income. The official thus has much easier access to larger loan amounts.
Even without civil servant status use the civil service loan
Contrary to the name, not only judges, teachers, police officers or other licensed professional groups can resort to civil servant credit. Anyone who is employed in the public sector and has worked there for more than 5 years with the same employer and can not be dismissed, may also be happy about the civil service loan with his special conditions.
Loans for civil servants
Officials in Germany have several options to take out a loan. The usual options are the Civil Service Loan and the Civil Service Loan.
Here we offer you the opportunity to review the conditions with our loan comparison for civil servants.
What is the official loan?
Often confused with the civil service loan, but with very own features is the Civil Service Loan. The civil service loan is taken, for example, in combination with a term life insurance. The civil servant loan is a short-term financing.
The official loan is paid via monthly installments, so the money goes directly to the lending bank monthly. In the civil service loan, however, the money is paid into a life insurance policy, which will then be repaid at the end of the debt. However, the accrued interest is paid directly to the bank all the time.
Advantages of the Civil Service Loan:
- The own family is secured, without a residual debt insurance is needed
- If the insured sum exceeds the total amount to be paid, the difference is paid to the debtor.
Even with the civil service loan, there are different offers
Of course there are also offers for civil servants from many different banks. As everywhere, there are also different conditions within the segment of civil servants’ credit. Who uses the credit comparison can see the best offers here. So it is possible to realize even more savings in the already very favorable civil service loan. The loan calculator makes it possible to obtain a quick comparison of civil service loans without any further obligation and at no cost.
Anyone who makes a request for a condition online from our loan calculator does not have to worry about the creditworthiness changing negatively. The official credit comparison on the Internet is therefore not only very convenient from home, but also offers no other disadvantages. On the contrary, due to the large supply, the online civil service loans are often cheaper than the loans that are on the table after going to the branch bank.