Official loans are also given under the terms “official loan” or “loan for civil servants”. A civil servant loan consists of a loan and (capital) life insurance, both financing instruments are inextricably linked. The civil servant loan is primarily an installment loan for private individuals. The special features of a civil servant loan lie in the target group, the loan terms and the repayment process. Civil servants receive the favorable conditions through the lifelong guaranteed income and the high creditworthiness.
Civil servants in Germany are distinguished by a total of four career groups. These are divided into the simple, the middle, the upper and the higher service. Qualifications and salaries are quite different within these career groups, but all of the above-mentioned professional groups can avail themselves of a civil servant loan. The professional group of civil servants is welcome at credit institutions because their status guarantees a high level of security when it comes to lending. Since the civil servant cannot be terminated for life – with a few exceptions – the risk of inability to work and the associated inability to pay are eliminated. Therefore, most insurers offer civil servants good special conditions. In many cases, the terms are kept much longer than is the case with other comparable loans. A look at our official loan calculator shows that:
Calculate interest on official loans and official loans
A civil servant loan is usually also linked to insurance against disability, because this can also affect an official. Should the borrower then no longer be able to pursue his profession due to illness, the insurance will take over the payment obligations accordingly. This additional protection not only protects the borrower, but also his family or heirs.
A civil servant loan is fundamentally linked to a life insurance policy that is loaned with the loan amount. Over the term, the civil servant, as the borrower, only pays the insurance premium and interest. The excess generated over the term – if there is one – is paid out at the end of the term and then has a correspondingly positive effect on the sum insured. Borrowers also have the option of redeeming their loan earlier through special repayments within the term. The loan itself is not tied to a purpose, rather it is left to the borrower. A civil servant loan is therefore also suitable for rescheduling existing credit obligations!
As a rule, official loans are long-term loans with a term of up to 20 years while at the same time covering the risk of disability and death. The repayment of the loan is suspended on the basis of the life insurance to be taken out, but at the latest after the agreed contract term has expired with the life insurance due. Early repayment of the loan amount, both in one sum and in several installments, is also possible at any time. The term of life insurance always corresponds to the term of the official loan. The (capital) life insurance itself is an insurance policy in the event of death or survival, ie it is either due in the event of the official’s death or upon expiry of the agreed term.
The amount of the life insurance contribution depends on the age of the civil servant and can be combined with accident or occupational disability insurance. The payment of the life insurance sum is made after deducting a predetermined processing fee. Officials can take advantage of the loan either for life or initially only on a trial basis. The lender receives great security in the planning from the lender, because there are only fixed and therefore unchangeable interest rates with this financing variant. The amount of the loan depends on the borrower’s respective net income and is approximately 20 to 24 times the net income.
If, contrary to expectations, the repayment of an official loan fails to materialize, the lender can immediately seize the employee. As a rule, official loans are only rejected if the private credit checker entry is negative. Depending on your wishes, the borrower can take out his official loan with or without premium. Agio is a discount on the loan amount that is used as an advance interest payment. Officials can also take out loans abroad without private credit checker information. Here you should inquire about the corresponding conditions, because these are often worse these days.
The target group for an official loan
In addition to officials for life and officials for life, pensioners, academics as well as workers and civil servants are entitled to an official loan. Some credit institutions also offer the loan to civil servants, but also to people who are employed as civil servants. These include, for example, employees in state-owned companies. The borrowers, for example active civil servants in the sense of constitutional law, must have been appointed to the civil servant relationship for life. The target group must also have a pension entitlement. And: As a rule, the borrowers should not be older than 60 years. This professional group includes, for example, teachers, professional soldiers, police officers and all civil servants in the post, judiciary and administration.
The target group also includes all non-resignable employees in the public service; they should not be older than 70 when the contract is concluded. In addition, an employment period of at least 5 years must exist. Many insurers also offer the civil servant loan to academics. In addition to tax consultants, auditors, lawyers, business economists and architects also belong to this target group. They too must have been in employment for at least 5 years. The respective professional status must always be proven when the application is submitted. So if you have a corresponding professional status, you should take advantage of the advantages of lending.
Since the official loan differs significantly in the processing of other forms of loan, it is also considered a special loan. The approval process is generally completely straightforward – provided that there is neither a garnishment of the salary nor a negative private credit checker information. In all other cases, the status and proof of income for the credit institution is completely sufficient. Overall, the civil servant loan offers extremely favorable conditions, an interest guarantee over the entire term, long and variable terms and extremely flexible loan amounts. Numerous direct banks also have loans for civil servants and academics in the public service on different terms in their program.
Officials with a negative private credit checker entry, on the other hand, have the option of applying for a small supplementary loan as a civil servant loan. This is possible up to an amount of USD 7,500 even without private credit checker information. However, private credit checker-free financing almost always comes from abroad. In addition to Switzerland, providers are also Liechtenstein. The loans are discreetly either postable or transferred directly to the borrower’s checking account. Appropriate sample calculations, loan comparisons and loan applications are also available for this on the Internet.
The application on the Internet
Official loans can not only be compared and calculated via internet platforms, they can also be concluded directly here. In many cases, the online offers are significantly cheaper than the offers from your own house or branch bank. As a rule, the online portals are clear and well sorted. At the same time, the portals offer a variety of comparison options as well as helpful test reports to help future customers make their final decision. Interested parties should only make sure that both the selection and evaluation criteria are presented in a comprehensive and varied manner. Important points before graduation are also keywords such as “service quality”, “reliability” and “support”.
The latter is particularly important because “personal” care should be provided throughout the entire term. And the lending institution should also be familiar with possible problems or complaints. In this way, prospective buyers always receive serious offers with appropriate advantageous conditions from independent experts, underpinned by a team of consultants ready for action. Online offers have clear advantages here, since the interest rates – compared to most branch banks – are also significantly cheaper. In addition, most online portals generally work with a large number of partners, which in turn offers interested parties great scope for cheap financing.