No matter if you are a teacher, a lawyer or a police officer, there are many job descriptions that can give the people exercising civil servant status. Civil servant status, which can also be achieved by public sector employees, brings with it numerous advantages – for example with regard to borrowing. The term “official loan” or “official loan” comes from the banking jargon and stands for special credit offers, which are offered only to licensed borrowers. The following article deals with the topic “official credit” and deals with all necessary requirements and criteria. In addition, there are some tips and tricks that can help officials with borrowing.
What is a civil service loan?
The term “civil service loan” is understood to mean a special loan offer which is only granted to authorized borrowers. The term “civil service loan” is basically an unprotected term, which is why banks and credit institutions can advertise in different ways with a civil service loan. The benefits to ordinary borrowers are usually that officials will receive either a lower interest rate, a longer fixed interest rate or a longer repayment term. The aspect of a longer repayment term is particularly interesting for consumer and consumer loans, as many banks offer “normal borrowers” in this area only maturities of a maximum of 60 or 72 months. Obviously, civil servants benefit from a lower interest rate, whether it’s a personal loan with a freelance or a mortgage loan. In addition to normal annuity loans, many banks also lend to the government officials, which are concluded in conjunction with a capital-forming life insurance policy. In this loan variant, the licensed borrowers only pay interest on the loan and a monthly insurance premium. At the end of the fixed term, the loan is repaid by the maturity of the life insurance in one fell swoop, whereby the sum insured at best also contains a surplus, which can be freely used by the borrower, due to the interest rate or performance.
When will the official status be obtained from a bank’s perspective?
In order to receive a civil service loan, licensed borrowers must meet different criteria. The requirements vary from one bank to another, which is related to the fact that there are no standardized guidelines for a civil service loan. Of course, all credit institutions require that the borrower is actually in civil servant status. Depending on the exact activity and the training path, it may take a different amount of time for a candidate to be officially raised to official status in accordance with civil servant law. However, to meet the requirements for a civil service loan, borrowers must normally have been in the civil service for a certain period of time, for example five years. Even if official-like professional groups such as judges or soldiers are officially not civil servants, in most cases they are among the beneficiary groups that can receive a civil service loan.
Why do officials receive better terms?
Civil servants are given preferential treatment in lending, as they have a very secure and almost non-terminable employment relationship. An official would, depending on the activity, several times by a massive misconduct towards his employer to attract attention to be finally released from the Diest. The extraordinarily high job security ensures that the clientele of officials are extremely popular with banks and credit institutions. Longer credit periods are also made possible for licensed borrowers, since theoretically, from a banking perspective, it is possible to plan for decades with the existing civil servant ratio. Professions such as teachers or police officers are not subject to any cyclical or industry-related fluctuations and are needed at all times and permanently. In summary, the advantages for civil servants can be explained as follows: On the one hand, the high job security legitimizes the granting of long repayment terms and on the other hand, banks issue civil servant loans at subsidized conditions in order to arouse the interest of the public servants (normal competitive situation on the market, Every bank would like to work with civil servants).
These banks have special offers for civil servants
Special loan offers for the target group of officials are an innovative and modern approach and are therefore not offered by any bank. Compared to the traditional branch banks, these are predominantly direct and online banks, which provide special credit offers to officials. A credit comparison on the Internet helps within a few minutes to determine attractive civil servant loans with favorable conditions. In principle, official loans are offered by many banks.
Tips on Borrowing
Due to their good creditworthiness (fixed and secure income), fully licensed borrowers can, in principle, be very self-confident in the credit transaction. In particular, in private and consumer loans, which are offered on the Internet as a “civil servant credit”, you get as a civil servant quickly feel that the banks almost “ripped” by a licensed borrower. However, when it comes to lending to a bank that does not officially offer separate lending options for civil servants, it is still highly recommended to discuss the aspect of existing civil servant status. For the bank, the civil service status is a clear advantage, which can quickly provide for a more favorable condition even without explicit offer for civil servants. In addition, one should of course always as an official to take care of presenting the loan request as comprehensible and vivid (complete proof of income, proof of an orderly account management, etc.).
Conclusion: The so-called “official loan” is a term for special loan offers, which are offered in particular by direct banks opposite official borrowers. Due to their high job security officers from a banking perspective, a highly creditworthy customer group, which is why they are offered, for example, lower interest rates or longer repayment terms.