Banks and financial institutions advertise lucrative loans and low interest rates. Depending on the profession, it is even worth taking a closer look. Banks have additional conditions for civil servants – from Robert Steininger *
Due to their special status, civil servants and employees of the public service have an important role in banks. Their secure income and great payment security make civil servants an important target group.
For this reason, financial service providers offer their own form of credit, which is particularly attractive for this group of people. The insight shows how the loan differs from other offers or bonds.
Basis and basics
In order to know which information is important, two questions should be answered in advance.
What is a civil servant loan?
The term is a classic installment loan, completed online or an application was made to the bank itself. It differs from other loans in terms of specific civil servant conditions.
The particularly favorable conditions result from the low payment defaults that can be expected from this professional group. The secure income and job security make it easier for banks to issue the loans they want. The repayment guarantee is almost 100%.
Who can apply for a civil servant loan?
Although the group of civil servants defines itself, there are other characteristics that include data subjects. These are in detail:
– Civil servant must have his status for life
– Probationary officials also have the chance to get a loan
– Retired civil servants must be under 60 years of age
– Federal judges and professional soldiers have the option of filing an application
– Academics who have been employed by a state institution for more than five years
compare offers
The possibilities of taking out a loan should be checked using various offers. The pioneer is with a repayment period of up to 7 years Bank of Scotland. With this long time frame the loan becomes very cheap For a state-employed professional group: Those who take advantage of the maximum repayment period can set a repayment installment of EUR 40. The final conditions vary flexibly. The advantages of civil servants are clearly reflected in the credit concept.
The Difference Between Loan and Credit should be made clear again in this case: A loan protects the civil servant in the event of an occupational disability. One Credit is granted freely and is not tied to a specific purpose.
When taking out a loan, other possible aspects such as illness or pregnancy should be considered. As a rule, an employee has a right to take out a loan during parental leave. Nevertheless, some financial service providers block themselves or make access more difficult. In these cases, it is advisable to weigh up the provider.
Pay attention to stumbling blocks before submitting an application
The civil servant loan is a safe affair. Nevertheless, it must be ensured before the application that the few disadvantages prevent a permit. In case of doubt, the banks charge additional protection for risk groups, which is reflected in the fees or monthly payments. Professional soldiers are most often affected by this regulation.
It is also a positive one Schufa registration provided. A negative entry can lead to a rejection of the loan application. Furthermore, no further loans may exist in parallel if a civil servant loan is to be applied for. Low-interest loans may only be granted once regular financing has been concluded. Be aware of this information, nothing should stand in the way of a positive approval.
*) Robert Steininger is a specialist in, among other things, investment strategies and publishes regularly on specialist topics such as online strategies, investment strategies and behavioral analysis
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