The official loan is only given to employees in the public sector, ordinary people can not take this form of credit. Civil servants and civil servants enjoy a high reputation with credit institutions ; even with traditional installment loans, this professional group is offered extremely low interest rates and long loan repayment periods.
We inform you about civil servant credit
Reason for these benefits are the mostly non-terminable employment relationships, thus the loss of a usually quite high salary for the operation of the credit rate is not to be feared. In addition, otherwise determining elements of the residual debt insurance need not necessarily be completed. For example, securing unemployment and incapacity for work by civil servants and employees is not necessary in the long run, but protection against death is advised.
The official loan is structured differently than a conventional installment loan. The repayment term is usually 12 – 20 years, the interest rates are extremely favorable. During the entire period, the borrower pays only interest on the requested loan amount. At the same time, he will take out life insurance with the same duration as the loan and pay for these contributions. This insurance is assigned to the financing bank upon loan payment.
At the end of the loan, the financing bank receives the final payment from the life insurance. At this point, the borrower faces both risks and opportunities. If the company in which the life insurance was taken out bad managed, the accumulated credit can be below the agreed final sum. In this case, the borrower has to make an additional payment to the bank. If the company has a positive balance sheet and high earnings, the borrower receives the proceeds.
An official loan is also suitable for the replacement of existing loans. However, as with any loan, the basic condition for granting is a Schufa without negative entries. In the case of negative entries, a civil service loan can not be granted.