Due to their profession, civil servants have good to very good credit ratings. This is rewarded by banks with cheap offers. Many finance companies today offer a special loan for civil servants.
It can be compared to a civil servant loan and is characterized by low interest rates, long terms and high loan amounts. It is offered by both branch and direct banks. The low-interest loans can be conveniently applied for from direct banks on the Internet.
At branch banks, they are bound to a consultation. The interest rates associated with the loan for civil servants fluctuate. They mostly depend on the term and the amount of the loan. There are some offers where the interest is tied to creditworthiness.
Planning security through long fixed interest rates
One advantage of the special loan is the long fixed interest rate. It is achieved through terms of 12 to 20 years, which are not uncommon with these types of financing. Due to the long fixed interest rate, borrowers have optimal planning security. During this period, interest rates are stable and are not subject to any cuts or increases that may result from economic changes for the borrower. The loan amounts offered for the loan for public servants range from 500 to 200,000 USD.
Thanks to this wide range, the financing is suitable for both investments and debt restructuring. Special loan offers for public servants and civil servants are also available for the purchase of residential property. With regard to the conditions, they differ from the classic civil servant loan.
Installment loan creates clarity
The loan is usually offered to public sector employees as an installment loan. As such, it is known to borrowers in terms of structure. The repayment is made in monthly installments, which in addition to the repayment portion also include interest and any other fees. At the end of the term, the loan amount is mostly paid off in full. Alternatively, such a loan can also be offered as a life insurance loan. In this case, the loan is supplemented with a capital-forming life insurance.
It serves the repayment. In this model, repayment is made by a one-off payment at the end of the term. The sum insured is available for this. With regard to the term and the amount of the loan, insurance and credit are optimally coordinated. If capital life insurance generates interest and surpluses, these are paid out to the policyholder at the end of the term after the loan has been successfully repaid. Overall, the loan for civil servants is significantly cheaper than other loans. It is also characterized by its flexibility and can be conveniently applied for online. Many direct banks offer telephone advice.