An official loan is actually a special form of the classic installment loan with very attractive conditions such as favorable interest rate, long term and high loan amounts.
Unlike many other installment loans, a civil service loan is not earmarked. However, such a loan is always dependent on credit and is assigned according to the personal financial situation of the creditor.
However, a credit check on a civil service loan is usually a standard procedure and is usually completed quickly after examining the non-terminability or security of an official’s job and insight into his or her financial situation. Therefore, the processing of the application for a civil service loan is usually handled quickly.
Among other things, this guide will tell you what benefits such a civil service loan can offer you, whether you qualify for this financial benefit, or whether you can apply for credit even for bad credit or negative Credit bureau.
The special case of a civil servant loan is also explained here.
To apply for credit, you generally expect the following benefits:
- favorable conditions: higher loan amounts, lower interest rates and stable interest rates
- free special repayment and longer terms, even installment breaks possible at any time
- no earmarking
- Special benefits such as invalidity insurance or term life insurance
Many financial services providers now offer earmarked loans that can be used, for example, for debt restructuring or mortgage lending.
Such loans typically require extra security. With a civil service loan, you can usually dispose of your money at will. Consequently, you do not have to provide the bank with any evidence of how the money was spent.
Since, in addition to civil servants, civil servants under certain conditions (for example, after reaching the age of 40) can not be dismissed or can only be dismissed for a good cause, many say they have a secure job.
Therefore, civil servants’ loans can be granted for significantly longer durations and with higher loan amounts than is the case with other credit models. It is therefore not rare that the term of such a loan is 15 to 20 years. With appropriate creditworthiness of the customer official loans are awarded with amounts of up to 150,000 USD.
For the same reason, the interest on civil servant loans will usually be very generous, so that you can not only expect lower borrowing rates and annual interest rates, but also with fixed interest rates, which allows you to plan well.
Without Credit bureau query possible.
A negative Credit bureau entry is not automatically an exclusion criterion when applying for a civil service loan. Rather, it is a sign that the bank needs additional collateral from you, such as the name of a guarantor or a salary assignment.
If you also take out life insurance, you can assign all rights and claims under this insurance to your bank as additional security.