Being a civil servant has many advantages in life. Anyone who has made it to the level of a civil servant for life can usually do nothing, at least financially. The state cares for its employees better than any other employer. The effects of civil servant status can be felt right down to the loan. The loan for civil servants is practically always equipped with exceptionally good special conditions.
Official Loans – Why Are There So Many Benefits?
The reasons for the favorable conditions for civil servants can be found at different levels. The main reason is the employer. The state pays very good salaries on average compared to the free economy. Not only are ministerial officials well paid, the state ensures fair wages down to the lower levels. Payment security comes at a merit, well above the garnishment limit, which a temporary worker can only dream of. The salary comes on time. The state can also not be affected by bankruptcy. Statistically, it can be proven that civil servants have problems with repayment only in extreme exceptional cases.
A lifetime official can bring other advantages in lending. The state cannot dismiss him. His job is always safe. Fluctuations in salaries are only positive. An official is promoted regularly, but is never downgraded in salary. Even after the end of an active career, an official is still well looked after. Up to 75 percent, the last salary, will be transferred into retirement. For comparison: in the case of pensioners, the entry pension should fall below 50 percent of the last net salary in 2030. No loan can be granted more securely than the loan for civil servants.
Who grants the loan to civil servants on special terms?
Particularly cheap offers do not only come from local providers. The online banks even have special providers for government officials. Those who only allow civil servants and public employees to grant their loans have an advantage. The credit default risk is minimal. Provisions for compulsory measures or even the credit default do not have to be included in the interest calculation. As a result, the interest rates on loans for civil servants are significantly cheaper than free loan offers for “everyone”.
In addition to the low interest rates, extremely long repayment terms are also possible. The repayment period, for example for a loan for civil servants to build a house, can even extend into the retirement period.
Does the official loan come from a bank?
Banks do not usually work with the term official loans. Insurance companies offer the civil servant loan as an end-time loan. This has a favorable effect on real estate financing.
On closer inspection, the civil servant loan is a capital-building life insurance. No repayment is required during the term. Only the interest and insurance contributions have to be paid. The actual loan is replaced with the life insurance sum. The civil servant loan and the civil servant loan therefore only have one common target group – civil servants.