Official loan – helpful explained – suitable provider.
If you are a civil servant or a civil servant, you can take out a civil servant loan. These people will benefit from very good interest rates. In addition to various insurance companies, banks also offer special loans.
History of the Civil Service Loan
The oldest documents on a civil servant loan date from 1955. Here, the long-term loan for officials was approved, which was not allowed to be more than 50,000 USD.
It was stated that the life insurance – Unterlegen must be at 200 percent. Only in 1973, this limit was lowered to 100 percent. The civil service loan was only combined with life insurance. It’s different nowadays. Since the cost of life insurance must be included in the APR, the loan has become very uninteresting.
Many providers of loans for civil servants now waive life insurance. Since these are no longer paid tax-free, many refrain from a loan for officials in combination with the insurance. Banks usually grant a loan without insurance.
Loans for civil servants – less and less needed
The loan for civil servants is still being awarded. But it is not an independent product. In the past, additional insurance was offered by banks. But since no more commissions can be achieved, most banks now refrain from the combination of civil servant loan and civil service loan.
An official loan is often mentioned when offered with additional insurance. This loan will not be repaid. The monthly installment is paid into the life insurance and repaid at the end of the term of life insurance at once. This term is often 15 to 20 years.
A civil service loan is a normal installment loan with cheaper interest rates. Since civil servants have non-terminable employment, banks have a very high level of security in the award process. An insurance is not offered. The rates of the loan are debited monthly. The customer pays these installments until the end of the term and has then repaid his debts.
This distinguishes the civil service loan
The loan for civil servants is characterized above all by the low interest rates. Since the client only has to pay the insurer’s contributions to the official loan, the bank has a high probability that the loan will be repaid.
Even if the loan amount goes up to, for example, 50,000 USD, the monthly burden will not be very high. The civil service loan can be concluded with a term of up to 20 years. Customers, who take a provider, who forgives the loan only with the insurance, pays monthly only the contributions.
For a civil service loan, it would be the monthly loan installments. For the loan, the customer has already met an important prerequisite. He has a non-terminable job. As a result, the interest will be low and the term can be very long. There is no need to fear during the term that the official will lose his safe job.
Advantages of the loan
Compared to a classic installment loan, the loan has many advantages for civil servants. Often a civil service provider provides additional insurance. This protects the borrower and his family.
This eliminates an expensive residual debt insurance. Since civil servants have a secure job and are not terminable, these people will receive particularly favorable interest rates. If you want to buy a property, you will find low-interest loans.
This does not create a financial burden that is not sustainable. The term of a civil service loan is much higher than a loan for employees. The financial scope is thus much higher.
Private credit checker and loans for civil servants
For a loan for civil servants, the Private credit checker is examined. This often shows that there can be difficulties. Applicants with a bad Private credit checker have to compensate them with the loan.
Thus, the bank can be sure that the borrower does not come into financial difficulties. If you only have to pay for financing, it’s easier than having a person with multiple financings. This has the advantage that the borrower can repay at low interest rates and thus delete his entries in the Private credit checker.
The borrower can borrow more without having to pay much more each month. The duration must be adjusted accordingly.