Time and again, the term “civil service loan” appears on credit calculators. At first glance, the topic is self-explanatory, a loan for civil servants. But what is it about, why is there such a loan. Read jejcrew.com for a critique
It is well known in the insurance industry that civil servants and civil servants pay cheaper insurance premiums. This is historically conditioned as the insurance industry assumes that civil servants are more careful about life. This has little to do with a civil service loan. The background is different.
Only very few banks offer a real loan for officials with special conditions. Our recommendation is the ABK Bank FlexoPlus loan
- Special conditions for civil servants.
- Very flexible: rates and duration can be changed at any time.
- Special repayments possible at any time.
- Best Installment Loan Test
In our official credit calculator, you can compare offers of other banks without obligation.
Officials have advantages in scoring credit ratings
As part of a credit application, the credit scoring of the applicant takes place. The credit check ultimately results in the determination of the level of the interest rate. Part of the scoring are, for example, the marital status, the income, the economic conditions, the profession and the industry. From the last two points the risk can be deduced, how high the likelihood of default is due to a job loss. An applicant in the construction industry offers greater risk potential here in December due to the weather than a programmer at a bank. In addition, in some industries the number of bankruptcies is higher than average. But even the programmer can lose his job, the installments no longer pay. This concludes why official loans exist.
Credit for civil servants for life, on probation, on revocation
Neither the employer, the public sector, can go bankrupt, nor the official, unless he is guilty of serious misdemeanor, lose his job. The credit rating determines the level of the interest rate, official loans are therefore significantly cheaper than a loan for a worker in the private sector.
The following groups benefit from the more favorable terms of a civil service loan:
- officials contender
- Officials on probation
- Non-cancellable public employees
Home purchase, construction financing
Civil servants can only be found in the area of consumer credit. For mortgage lending, there are no explicit offers for civil servants. The professional status has a positive effect on the scoring and thus on the interest rate only in the credit check.
Anyone looking for a loan as a civil servant is well advised to explicitly choose a “civil servant loan” when making a loan comparison, even if alternatives are offered as alternatives.
There is one exception. If the loan is to be used for the purchase of a car, it makes sense to compare the terms of the civil service loan with those of a car loan. Due to the simplified collateralization of the car loan, the borrower withdraws the car letter, the banks also offer for this earmarked loan more favorable conditions.