It is particularly easy for officials to obtain a loan in the financial world. They have a status with banks that allows them to take out a special loan for civil servants. Some banks have already adjusted to this group of people and offer particularly attractive offers. These social loans are given to civil servants, public sector employees and high-income employees.
The loan is given in combination with a life insurance policy that can be found at the same amount as the loan amount. During the entire term, the borrower pays the insurance premium and the interest on the loan. When the loan expires, these paid-in premiums and interest are used to repay the loan amount.
What conditions are awarded?
In the case of a loan for civil servants, the interest rate is always constant over the term. The minimum amount is 10,000 USD and can be increased to 100,000 USD. If asked, borrowers also have the option of making special repayments. Should the borrower receive money unexpectedly, such as through an inheritance, he can either increase the monthly installments or make a special repayment.
In this way, the loan can be redeemed more quickly, which has the advantage that interest is saved. The excess interest will be paid out at the end of the term. Loan rates from old loans must be replaced. For example, the new loan must first be used for the old payment obligations before the remaining amount can be used for other purchases.
Depending on the loan amount, the term can be between twelve and 20 years. This gives the borrower the opportunity to make larger purchases, such as a house or an expensive car. The loan for civil servants can only be taken up to the age of 65, because otherwise the risk of credit default for civil servants is too high.
The younger the applicant of the civil servant loan, the better terms the bank will provide. Some banks offer the customer to pay off the loan in full after he has paid the insurance premiums for 15 years.
Credit comparison – only then loan contract
Officials should definitely carry out a credit comparison. You will find the best among the many offers and save a lot of money. Therefore, a loan comparison should first be made before a loan contract is signed. Since the offer is very large, there are different offers. These differ mainly in the interest rates. Some banks charge a processing fee, which others waive. Therefore, a comparison should never be omitted.