Anyone who wants to take out a personal loan as a civil servant or employee in the public service can do so easily. In our comparison calculator you will find many suitable offers for instant loans or installment loans, which are also given to civil servants.
What is the official loan?
Since civil servants have a special status in society because they have the safest job, this can also have a positive effect on lending. The credit for civil servants is aimed precisely at ensuring a secure income for a long period of time.
For this reason, the loan can be given a long term so that the monthly charge can be kept very low. The banks’ income serves as collateral and, in addition, a life insurance policy. Because this is a special feature that only the personal loan for civil servants can offer. On the one hand, the risk of death is hedged in such a way that the life insurance makes a payment to the surviving dependents with which the personal loan can be repaid. On the other hand, the loan can also be repaid via the capital payment paid out on day X. The borrowers with the civil servant loan do not pay any payments for the repayment of the loan to the banks during the term. You only pay a contribution for the accrued interest and you pay an insurance contribution for the life insurance.
Thus, the civil servant loan is a final loan, which is then repaid in full on a previously agreed day with the money from the life insurance. It is important that the term of the life insurance and the loan are the same, so that many credit institutions plan to take out life insurance.
In addition, it must also be ensured that the benefit amount is identical, or at least that high that the loan amount can be paid. In most cases, the civil servant can still look forward to an additional amount when the lump sum payment is made, since the insurance company does not pay a fixed amount, but does provide a guaranteed amount, since surpluses and participations are used here.
Characteristics of an official loan:
- Final loan
- Security is provided by the status as an official
- long loan terms
- low payments during the term
- Additional life insurance to repay the loan
Anyone who has the opportunity to take out a civil servant loan as a civil servant and public employee should do so. Not only that such a long credit period can be granted, but also because of the costs. The payments for the insurance premium and the interest payments during the term are generally significantly cheaper. In addition, a benefit can be received from the life insurance if the amount paid out exceeds the amount that has to be paid for the repayment.
It should not be forgotten that some providers offer the personal loan to civil servants and that differences in interest costs and benefits are likely. If you don’t want to pay a cent too much, you should have the credit comparison checked in advance to determine which provider is the one that performs best here.