Start your inquiry here without obligation and free of charge
When granting loans, members of certain professional groups are preferred because they are considered to be particularly safe and reliable debtors. This applies, for example, to freelancers such as doctors and lawyers, but especially to civil servants.
Special loans for civil servants are characterized by particularly high loan amounts, long terms and extremely low interest rates. Therefore, officials are always well advised to seek special government loans instead of taking out a loan for everyone. In addition to official loans, the contractual terms of which are structured like those of ordinary consumer loans, special loans for civil servants are also offered in combination with capital-building life insurance.
Installment loans for civil servants
Such loans are ideal for financing larger consumer wishes, such as the purchase of a new fitted kitchen or expensive consumer electronics. In the case of official loans, the special professional status of this customer group is already taken into account in the credit check. As a permanent civil servant, there is no risk that civil servants will not be able to repay their loans due to unemployment.
For this reason, they are generally granted higher loan amounts and longer terms than customers who are employed in the free economy. In some cases, contract terms of up to 20 years are possible. Your privileged position also affects the level of interest charged on government loans. Because there is no need for a high risk surcharge, as is common in other professional groups. Loans for civil servants are usually extremely low-interest.
Official loans with life insurance
Loans for civil servants linked to capital-building life insurance have become increasingly popular in recent years. A life insurance policy is taken out in parallel with the loan, which has exactly the same term as the contract term of the loan. The life insurance cover corresponds to the loan amount. The advantage of these loans for civil servants is that they are perfectly secured for the borrower’s family. Should he die before the end of the contract term, his relatives benefiting from the life insurance policy will receive the sum insured and can therefore repay the civil servant loan without any problems.
Such loans for civil servants are designed as final loans, so that the repayment is only made in one amount at the end. Accordingly, the borrower does not pay any repayments during the term, but only the interest that accrues. Instead, he pays the premiums due for his life insurance every month. In the event of survival, the insured is paid the sum insured at the end of the term, with which he then repays the civil servant loan. The customer can keep any surplus shares that arise.