Civil servants enjoy many benefits in life because of their professional status. Among them is the advantage of an average good to very good credit rating, which is mainly due to the regular and secure income. Of course banks appreciate this advantage the most, which is why civil servants are among the most popular customers here. It is also thanks to the creditworthiness that the banks have come up with their own loan for civil servants, who knows how to convince with special advantages.
What is the credit for civil servants and what is it good for?
At the outset, the loan for civil servants sounds like more money than, for example, a comparable installment loan. In addition to the actual loan agreement, a capital-forming life insurance policy is also taken out, the contributions of which require additional expenses on the part of the applicant. However, this life insurance fulfills a specific purpose, from which ultimately also the advantages of the civil service loan arise: It serves with its lump sum the repayment of the civil service loan.
The loan for civil servants is therefore first of all a bullet loan. This means that during the term no repayment payments are to be made, but usually only expenses for interest must be provided. Life insurance creates a higher level of security, especially for the bank. For a capital-forming life insurance can fulfill the same functions as a residual debt insurance in case of a case. Remaining debt insurance is usually based on term life insurance, which pays if the borrower is affected (occupational disability, unemployment and death of the policyholder), but does not raise capital over time.
Similar to, for example, a securities loan, a sum is built up over the entire term with which the loan can be repaid in full at the end of the term. However, unlike a securities loan, life insurance is the safer alternative. The loan for civil servants therefore also offers another advantage: the longer term. Banks grant longer terms than would normally be the case for real estate loans or similar long-term installment loans. In addition, the borrower participates in the surpluses generated by the insurance company.
This is already said something about the purpose of such a loan, because the loan for civil servants should be used most likely for long-term financing, since its benefits are best shown here. The loan for civil servants is therefore ideal for real estate financing, but can also be considered as a car finance or as a renovation loan. Along with the longer maturities are offered by most providers and longer fixed interest periods. These can then last for 15 to 20 years and allow the applicant to plan or calculate in advance over a long period of time. An aspect that primarily benefits financial security.
Where is a loan for civil servants?
Not every bank offers this special loan. Often it is also necessary to specifically ask for a civil service loan. Search engines on the Internet provide good services here: Not only current offers are found, but also a variety of comparisons. Since the offer of civil service loans is still manageable, it will not be difficult at this point to find the right credit. As with other loans, attention should be paid to the effective interest rate, which provides information on what ultimately causes a loan to cost. The conditions must also be respected, as even a loan to civil servants is not awarded without collateral. credit bureau entries can prove to be just as hindering here.