Officials are very welcome customers at every bank. The officials know this and therefore like to pretend to be very demanding and critical when it comes to products related to loans and financial services. But the banks are dependent on exactly such secure and financially well-off customers. And that is precisely why they grant officials special concessions in the area of loans.
Better interest rates and lower credit requirements for civil servants
Loans for civil servants are generally accompanied by a very low interest rate. In addition, the loans are designed in such a way that they are very flexible and can be easily adapted to critical customers. For example, there is no need to provide information about the intended use. And the monthly installments can also be chosen freely.
However, civil servants do not get all these benefits just because they have civil servant status. Rather, the banks see this as a high creditworthiness, which drives them to these benefits and special conditions.
The special thing about loans for civil servants
Even if you can hardly believe it, but a civil servant loan is a completely regular loan. It is available as a real estate loan as well as an installment loan. However, official loans are only made available to civil servants. Employees, workers, pensioners or the self-employed cannot use these loans. Not even if they can name an official as a guarantor. And that’s what makes this type of loan so special.
The favorable conditions do not only refer to the interest. Also, processing or consulting costs are usually not incurred for a loan for civil servants. If the loan is to be triggered before the agreed deadline has expired, there is no need to expect fees for this process. Because the possibility of an earlier release is always offered free of charge.
This way or use the great discounts
What sounds so attractive is often used by many officials. Many finance their own home in this way or use the great discounts to finance a vehicle. Since civil servants are almost non-resignable, they only have to name a guarantor if the loan amount is very high. Loans of up to 20,000 USD usually do not require a guarantor.
Tip: Even if you are not an official yourself, you can take advantage of this professional group when applying for a loan. Because civil servants are also often seen as guarantors. So if you want to take out a loan and have an official in your family, you should ask them if they guarantee the loan.
The bank will be recognizable with a great loan offer. And even without a civil servant loan and civil servant status. It is important here, however, that the official has no problems with the credit bureau. Because then the bank can also deny all advantages of the loan.