Installment loans for civil servants.
Officials generally have no difficulty in getting an installment loan for civil servants. This group of people includes life officials, police officers, judicial officers and also probation officers. Banks like to see civil servants as customers, because they meet all the criteria that have to be met when applying for a loan.
General information on an installment loan for civil servants
An installment loan for civil servants, as the name suggests, is a loan that is paid back in installments. There are crucial differences from normal loans that employees use. The borrower has the option of taking out a maximum loan amount of USD 100,000. With this sum, the term is often 20 years. However, the term can also be used for smaller sums. Employees have to pay off the loan in much less years, so that their monthly burden is also higher than for civil servants. An installment loan for civil servants is never earmarked, so the amount of the loan can be freely used.
Interest rates are kept low by the banks because the credit rating is very good and the borrower is rewarded with low interest rates. The bank takes almost no credit risk. If the official has a negative private credit checker, he will usually get an installment loan for civil servants. In this case, he is often offered life insurance to cover the loan. In order to be able to use the loan for civil servants, a condition is set by the banks. With the loan amount, the applicant must first settle all other loans that already exist in order to then be able to freely dispose of the loan. This protects the official from over-indebtedness and the bank can be sure that the official’s salary will be enough to repay the loan.
Officials should also compare
Like all other borrowers, an official shouldn’t forego a comparison. Not only the house bank offers a loan, but also other credit institutions and direct banks. On the Internet, the official should be careful that he is treated like a civil servant when granting a loan and can thus benefit from favorable special conditions. Not every bank issues a special civil servant loan, so there is often no possibility of making special repayments. In addition, interest rates can vary widely and are often between 2.9 percent and 12.9 percent. So it can be seen at first glance which loan is expensive and which one turns out to be cheap.