Finding a suitable loan is usually not a problem for civil servants. Not only do they have a very secure income, they also have a good credit rating. The only exception are those officials who have negative information about the creation. However, this is likely to be an absolute minority. In the vast majority of cases, officials can even choose which loan or loan they would prefer.
Official loans are offered by numerous banks, savings banks or insurance companies. In contrast to a normal installment or consumer loan, a loan for civil servants has some special features. It would be important to remember that not only a loan contract but also life insurance must be taken out. In addition, the terms are very long and the interest rates are very low. Many civil servant loans extend over a period of 10 to 20 years.
In this context, it should not be left unmentioned that only the premiums for life insurance have to be paid during the term and that no repayments are made. The entire loan amount is only settled at the end of the term. The sole purpose of this is the amounts of money saved as part of the life insurance. It is not uncommon for capital life insurance to generate greater profits during the term. If the loan and/or insurance contract provides for it, the official will be involved.
Installment, consumer and overdraft facilities
If the official wishes, he can take out not only a loan for civil servants, but also a normal installment or consumer loan. The same applies to a car or real estate loan, which is often granted at particularly favorable terms. An overdraft facility in the checking account is a matter of course for most civil servants. The amount is determined individually and is usually three times the monthly income.
An overdraft facility has the great advantage that it can be used in whole or in part at any time and can also be repaid flexibly. If no specific purpose is stated, a loan for civil servants is freely available. The repayment modalities are agreed individually and recorded in a loan agreement.