A loan for civil servants can take out an official loan. This loan has many advantages and is specially tailored for civil servants. Like civil servants, this group of people benefits from very favorable conditions. With a loan for civil servants, large purchases such as a car or a new kitchen can be easily purchased. In addition, a loan is suitable for employees in the public service to repay old loans or to finance a property.
What are the special conditions for a loan for civil servants?
If you take advantage of this loan, you can also opt for a complete package. This includes not only the loan, but also life insurance. Employees can then repay the loan through the life insurance. This has a very big advantage, because the insurance not only protects the borrower, but also his family members.
If the contributions are canceled, the insurance will step in so that the entire family does not have to pay the installments of the loan. Teachers, judges and finance officers can benefit from this loan. Professional soldiers, officers from the fire brigade and the federal police also belong to this group of people. The employment relationship should be at least five years before a loan is taken out. The loan can be replaced much earlier by special repayments. At the end of the term, the surplus participation in the life insurance is paid out to the borrower.
Advantages of a loan
Not only the combination with life insurance is an advantage. The terms of a loan for civil servants are very profitable. These can run from twelve to 20 years, with the rates that have to be repaid kept low. This means there are no high financial burdens during the entire term. Another point is the loan amount. This is much higher than with other loans. The loan amount can be up to 100,000 USD, provided the right conditions are met and the credit rating is very good. With this amount, the interest rates are kept very low, so that a long-term loan does not necessarily have to be expensive.
Free use for a loan
Civil servants, like civil servants, are free to choose what they want to use the money for. So the loan is not earmarked, which creates a lot of freedom. It doesn’t matter whether the money is used to pay off a loan or for a vacation trip. Installment loans, however, that already exist must first be repaid, such as car loans, mortgage loans or zero percent financing. A loan is ideal for debt rescheduling, because interest rates are much lower than for other loans, making monthly payments more affordable.