Officials who are still in the probationary period can not yet afford banks the collateral a civil servant has to offer for life. Nonetheless, this gives banks a chance to retain a good-credit client, so loaning for probationary officials is anything but impossible. In addition, some credit institutions have now specialized in loans for civil servants and, accordingly, have special loan offers for probationary officials.
The official loan and its requirements
The Civil Servants Credit is a credit designed specifically for the income situation of civil servants and offers particular benefits. Whether or not the loan will be awarded to officials on probation depends on the provider as well as the age of the applicant. If the latter has reached a certain minimum age, many credit institutions grant the civil service loan even before employment as a civil servant.
With the civil service loan, employees in the public sector have a loan available, which speaks for itself mainly by its long terms and the favorable interest rates. The great feature is the simultaneous conclusion of a capital-forming life insurance. This serves the purpose of paying off the loan amount at the end of the term at one go with the help of the lump sum.
Purely from a credit point of view, this means a bullet loan that still has additional collateral. A capital-forming life insurance can effectively be as beneficial for the borrower as a residual debt insurance. The remarkable difference: With ordinary residual debt insurance, no capital is built up which can be disposed of at the end of the term.
Unlike endowment insurance, which is essentially nothing more than a modified version of term life insurance, premiums do fall over time, but this can not generate surpluses. At least none in which the policyholder is involved. The high level of collateral thus offered also makes the Civil Service Loan, a loan for probationary officials, a very low-interest option for making larger investments over relatively long durations.
Civil service loan
This already says something about the purpose of a civil service loan, because it is ideal for financing real estate or motor vehicles. Because of the long durations, higher sums can also be applied for in this way, which leads to the result of being able to move into the home much earlier than would be the case with a normal real estate loan. New and used cars can be bought even cheaper because the borrower can act as a cash payer at the dealer and thus comes to benefit from discounts and / or bonuses.
The question of whether this credit is already worthwhile for probationary officials can be answered in the affirmative as providing the applicant with the option of securing favorable interest rates over a long period of time without fear of future interest rate hikes would later make the loan more expensive.
If you are looking for a civil service loan, you can use the internet to access a large number of comparison portals that compare existing offers, including loans for probationary officials. Also should not be neglected to ask your own house bank, if official loans are offered. Because these are not nearly as common as classic installment loans. Due to the favorable conditions, it is of course also possible to offer a change of the house bank.