A public sector loan is also colloquially called credit for civil servants. Civil service loan is here an unprotected designation. It is used for a purpose-free and purpose-tied loan, which, however, is only given to a certain group of people.
Benefits for officials
The credit for the civil service is characterized above all by good conditions. In addition, they often offer very long maturities, as employees in the public sector are considered to be very reliable in the repayment. In addition, employees in the civil service have a very high job security. Civil servants include all civil servants, police officers, civil servants, professional soldiers, judicial and postal officials, judges and probationary officials.
However, civil servants who can benefit from such a loan also include academics if they can demonstrate permanent employment, which is at least 5 years old, and academics who are already retired.
The Public Service Loan offers an attractive opportunity to meet cost-intensive needs. This can be a car, home furnishings or vacation travel. The public service loan can also be used to easily replace other and more expensive existing loans.
A loan for the civil service is an installment loan with particularly favorable conditions. These are reflected in the low interest rates, the high loan amounts and the long maturities. These can be up to 20 years. However, the public sector loan also provides a high level of planning certainty, since the monthly repayment installments set at the time of closing and the interest rate remain the same throughout the term.
The amount of the loan is based on the monthly net income. Here child allowance and other additional income are taken into account. The credit for the civil service can be granted up to 20 times the net income. Here are the possible loan sums between 10000 and 80,000 euros. The terms can be chosen freely and are between 10 and 20 years. For each loan, repayment terms are of particular importance. Most people would like to keep the monthly installments due. This is generally possible with the loan for the civil service.
Completion of a public service loan
The public service loan is awarded as a long-term term loan. As a rule, a corresponding endowment policy is taken out together with the loan. This is due in common and at the same time as the loan for the civil service. Upon conclusion of the contract, the endowment policy is assigned to the respective lender. In monthly installments, the interest on the loan is repaid and the contributions paid for the life insurance.
The actual credit for the civil service is paid by the endowment life insurance. As a result of the assignment to the lender, the insurance sum of the life insurance upon payment, including interest and surpluses, is paid directly to the lender. The sum insured is usually higher than the loan amount. The balance will be paid after the loan has been repaid. If the borrower dies before the loan expires, it will also be replaced by the life insurance then due.
5 Tips on Public Service Credit
1) Public service – The longer, the better
A bank will be particularly interested in the allocation of their credit, as long as someone is already employed in the public service. If that is just a few months, then the advantage can not be so great, for example, if you are still in the probationary period. This should be completed. After 5 or 10 years, however, the chance is best that you get the good conditions.
It usually does not matter if someone is a civil servant or just employed in the civil service as a “normal” worker. The amount of remuneration is only relevant for the amount of the loan.
2) Benefits of working in the public service
Those who work in the public sector have a great advantage, which banks appreciate above all: That the salary is simply not absent is not realistic. The reward comes on time and the chance of someone losing their job is very low. Because job cuts in the form of layoffs in the public service no one has to fear.
This means that the rates for a public service loan can be paid just as reliably as the salary is received monthly. Banks who otherwise often deal with fixed-term employment contracts in rather small companies often appreciate that. Above all, employment in the civil service is one thing: for sure.
3) These documents are required by the bank
Of course, anyone employed in the civil service must be able to prove it. So the bank first needs the employment contract, which should not be limited in time or as long as the repayment plan is. In addition, bank statements are required, which prove at least the last 3 salary entries.
So the bank sees that the money has actually been received and can also use billing to see if someone is actually working full time and recognizing further details. Under certain circumstances, a kind of household bill is required or created together with the bank.
4) Comparisons are inevitable
Perhaps the terms will be a little better than a loan granted to a person who has a secure job in the private sector. Nevertheless, every employee and civil servant employed in the public sector must carefully consider whether the amount of the loan also fits their own income.
A bank initially serves as a counseling center, but always has the goal of obtaining a degree. And she especially enjoys doing this with people who have a regular and secure income. The credit without income does not apply here. So, compare and keep your eyes open to keep an eye on all contract terms.
5) Get offers for the loan
Anyone working in public service has good cards. Hardly any bank would reject such an order because it also suffers when suddenly the installments are no longer paid and problems arise. Just because you are a relatively popular customer on the market, you should take advantage of this position and seek offers. Almost all banks have special rates for civil servants.
If not, then it is still worth asking because interest rates can often be adjusted by the bank itself according to the default probability. Nobody should sign the first offer, but compare it first.
Credit without credit bureau for civil servants/civil service?
If you are a civil servant, a civil servant or an academic, and you are in a non-terminable employment relationship, there are many advantages to having a civil servant’s loan without credit bureau, and we will show you how it works and what to look for when applying for it.
The official loan without credit bureau – what exactly is that?
Basically, an official loan without credit bureau can be used for a variety of purposes: whether you want to settle a bill, finance a trip or even buy a vehicle – all this is easily possible and the bank will not ask what the loan should be used.
The application proceeds as in a normal installment loan: As soon as all required documents have been completely filled in and submitted, you will receive an offer for the official loan without credit bureau within a few minutes.
In the case of a positive decision, the documents must be signed only by hand and sent by post to the bank.
The official loan without credit bureau is often forgiven even if one has already received a rejection from other banks due to a bad credit rating. In addition, since no credit bureau query, the credit does not affect the creditworthiness. Of course, most banks, of course, still need collateral or evidence that the official has a regular income and can repay the loan installments.
What advantages does a civil service loan without credit bureau offer?
In general, civil servants at most banks are very popular clients, who can often benefit from attractive terms due to their secure employment relationship. Not only do you receive low-interest loan offerings, but you often pay more than normal employees would. Amounts exceeding 50,000 euros are in most cases no problem. The interest rate is usually less than 2%, making the loan a very cheap deal.
As a rule, in the case of an official loan without credit bureau, it is no problem to make special repayments if unexpectedly more money should be available to use for the repayment of the loan. Unfortunately, this is still not a matter of course for the banks and often even involves costs. In the case of an official loan without credit bureau, special repayments are generally possible free of charge, which brings significantly more flexibility.
Nevertheless, it is important not to decide on the first loan offer, but first of all to check what the terms of the various banks in the market look like. Numerous direct banks on the Internet offer better conditions today than branch banks, so that a comparison will pay off in any case.
What borrowers need to look for in an official loan without credit bureau
Who wants to take a civil service loan without credit bureau, must of course first meet some conditions in order to get this approved. In principle, the borrower must be in an indefinite – and often non-terminable – employment relationship that has existed for at least one year. In this way, the bank recognizes that the borrower earns a steady income over the long term and is able to repay the loan installments safely.
It must also be ensured that the income is not attachable. The bank will also check whether there is an entry in the public debtor register. Even with a civil service loan without credit bureau, it is problematic to receive a positive decision, if, for example, before a bankruptcy proceedings has been completed. However, this is different for each bank – and often it can help to have a personal conversation with a bank adviser by explaining their personal financial situation. Therefore, do not be discouraged immediately if you refuse, but look for the interview.
A credit comparison for a civil service loan without credit bureau can be carried out for free on various comparison portals on the Internet. Here only a few required data must be entered, such as the duration and the desired loan amount, so that the computer can evaluate this. Then you get a tabular overview of all loan offers for civil servant credit without credit bureau, from which you have to select only one suitable.