A Civil Service credit is for civil servants and civil servants only. They get the loan for particularly favorable conditions and long terms. The background to this is that civil servants are virtually non-terminable, and thus it is almost impossible for them to lose their jobs.
What requirements must be met to get this loan?
As the name implies, only civil servants receive it. However, there are also exceptions where people in other professions could get this loan. There are different types of civil servant status. These can be for lifetime, trial, revocation or on time.
Nevertheless, it makes sense that they inquire about such a lending, because there are also exceptions. Because ultimately, it always depends on the particular situation of the person. It is even more difficult for temporary agents, as their status is not permanent. Nevertheless, it depends on the individual cases, whether a Civil Service credit can be granted here.
Other prerequisites are a sufficient credit rating, of age, of course a sufficient and regular income, residence in Germany and if possible no negative entries in the Credit bureau. In addition, a salary transfer for such a loan is important. If the borrower does not meet his obligations, then part of the salary can be directly attached. Here are all the requirements at a glance:
- Residence in Germany
- Sufficient and regular income
- Checking account must be present
- You have to be of age, but under 60 years
- Civil servant or non-terminable civil servant
- Positive Credit bureau score
- Good credit
- health check
- So far, no seizures, salary assignments or disciplinary proceedings
Which civil servant status will be awarded and when?
Basically, this status is awarded by the state by deed and recorded. However, one is not an official for life, even if one works for the state. If one is currently in training for the simple to higher service, one is a civil servant on revocation. In the case of teachers this is also the case during the legal traineeship and with police commissioners until the state examination is taken. If the state examination is completed, you are a probationary official.
Of course, as with any other employee, civil servants have a probationary period. This is usually three years, unless extended or shortened by the employer. When the probationary period is over, you’re a lifetime civil servant. Once you have achieved that, you are virtually non-terminable and have a secure job for life and you do not have to worry about your salary.
Example calculation for a Civil Service credit
Assuming that a civil servant, salaried academic or civil servant takes out a loan with a net loan amount of € 60,000.00 with an annual percentage rate of interest of 6.95%, the calculation would look like this:
- Net loan amount: € 60,000.00
- Fixed borrowing rate: 6.74%
- Annual percentage rate: 6.95%
- Running time: 144 months
- Payment 100%
Returns a total amount including interest of € 87,552.00. This results in a monthly total rate of € 608.00. Special repayments are possible at any time. Silent salary assignment required. This can be used, for example, for a rescheduling, a car purchase, a move, for modernization work on home or apartment, or furniture, etc. It should be noted that different loan offers are available with different interest rates.
Advantages of this loan
- Flexible terms of 144-240 months
- As a result, the rates are low
- Loan sum can be chosen arbitrarily
- Low interest over the entire term
- Special repayments possible
- Loan is payable in the short or long term
- Integrated term life insurance
5 tips on public servant loans
So that the best and cheapest offer for this loan is always found, it is advisable to follow the following tips:
Tip 1: Compare offers
Before the first best offer is taken, one should inquire generously with individual banks and obtain offers. Because every bank has different criteria and interest rates. And depending on loan amount and term, these can vary from bank to bank. Some banks, for example, have higher interest rates for longer maturities, while others offer constant interest rates for all maturities.
Tip 2: Include the partner, if necessary
At banks officials are welcome as customers. However, if there are still small hurdles, it makes sense to involve the partner or a second person. This increases the chances of acceptance especially for officials on probation or revocation and also gives a lower annual interest rate. A corresponding consultation is not wrong.
Tip 3: Always have your documents ready
The bank always asks for credit application documents such as the copy of the identity card, bank statements, documents on existing loans, or referrals. Therefore, it is important to have these documents at hand and complete. If the required documents are then available at the bank, nothing stands in the way of concluding the contract after the examination.
Tip 4: It is not wrong to look at “normal” installment loans
Before accepting a public servant loan, it is advisable to look at normal loans as well. Because for borrowers with good credit rating banks also offer mostly good and cheap interest rates. Maybe even cheaper than a public servant loan.
Tip 5: Absolutely use file upload and video-ident
So that you can get the loan even faster paid, you should definitely use the possibility of the documents upload. Many banks are now making this available. This has the advantage that the bank has immediate access to the documents. It often takes 2-3 days by post until the bank documents are available.
If the bank then sends you an offer, you can identify yourself directly using the video-ident method, provided the bank offers it. One confirms in a personal video chat with a bank employee his identity among other things with the presentation of the identity card. Then the bank can check everything directly and you save the time-consuming post-identification procedure.