A civil service loan can be taken up by teachers, academics and even civil servants. The other persons also include civil servants and professional soldiers.
A civil service loan is an installment loan with a very low interest rate.
Basic requirements as good as fulfilled
The basic requirements that banks demand for installment credit can be met by civil servants. When applying for a civil service loan, applicants can demonstrate that they have a secure job.
You can not be dismissed as a civil servant, so the salary situation is very secure. But officials, like other consumers, can have a bad private credit checker. This has a negative effect on the otherwise very good creditworthiness. Officials should also make sure that the private credit checkerscore is not too low.
negative private credit checker – nevertheless good chances
in a civil service loan, the private credit checker is examined. Negative private credit checker entries can be garnishments, the cancellation of the Dispos or even the withdrawal of a credit card.
Anyone who is in default of payment, which can happen quickly, can also get a negative entry. The influence of the private credit will noticeably lose importance in a civil service loan. Even if there is an entry, the safer income and the safer job can ensure that the loan is still granted.
Often the official gets the chance to increase the sum of the loan in order to repay the debts. For some banks, the private credit will not take place when an official makes an application.
Credit without purpose
Officials do not have to indicate a purpose when they receive a civil service loan. The loan amount is at your own disposal.
The customer does not have to provide proof of what the money was spent on. That also makes it easy to finance a car. Where banks usually want the vehicle registration as collateral, this will not be the case with a civil service loan. It can be used to pay old debts or make purchases.
With the low interest rates, a favorable debt restructuring can be made. As a result, entries in the private credit checker can be deleted.
Special features of the loan
The loan for civil servants has special features. Although this loan is a normal installment loan, there are special features. The term of such a loan can often be much longer than an employee.
The same applies to the loan amount that is taken up. Thus, larger and expensive purchases can be made that a “normal earner” often can not afford. The interest rates are also structured differently. Since the official is not terminable, no unemployment is expected. Banks often give very low interest rates.
As civil servants often borrow a lot, the bank still earns the loan, even if interest rates are kept low.
That’s how the credit works
The customer can get a civil service loan as a police officer, judge and civil servant for life. He must pay attention to how high the interest rates are. Some banks allow a fixed rate.
But that is not the case with many credit providers. For a non-binding inquiry, the salary should be stated and the civil servant’s status should be mentioned. Who starts a credit comparison, will find appropriate offers. The APR will be very low for civil servants. Thus, the displayed interest in a comparison can also be that, the officials are obtained. The credit rating is rated high.
Based on the purpose of use, the term and the loan amount, a chronological list is displayed to the customer. Here only the right offer must be selected.
Documents for examination
The bank will check the creditworthiness of the official. For this purpose, documents must be submitted. Normally the remuneration is expected. The bank statements of the last one to three months must be submitted. The certificate of honor and the certificate of the employer must also be checked.
Old loans often have to be replaced with the new loan. After the replacement, a certificate is expected. After the test, a credit decision will follow in a few days. Sometimes it works even faster.
Civil servant loan – difference to civil service loan
In the official loan, it is the loan amounts that have to be paid without taking out insurance. The bank awards favorable terms, so that a high loan amount can be paid in small monthly installments. The interest rates are very low and the term can be up to 20 years.
Often the bank uses the term “civil servant loan” and ” civil servant loan” for one and the same financing. These two are very different from each other.
The official loan is repaid during the term with contributions from an insurance company. In the civil service loan to a pension or life insurance is completed. It is spoken by a term loan. The reason is that at the end of the term, the total debt will be paid in such a way and not in monthly installments.
Should a surplus of contributions accumulate during the term, the borrower will receive it. The biggest advantage of this capital procurement is the hedging, if the borrower should die during the term.