Credit for Official Candidate
Official candidates are still in training and generally have a good chance of becoming a civil servant for life. This is particularly advantageous in terms of creditworthiness, as the creditworthiness of officials enjoys great popularity with banks and other credit institutions. As a rule, and in the spirit of sustainable customer loyalty, these will also be much more generous with a loan for civil servant candidates than would be the case with other applicants.
Which loan is suitable for civil servants?
Whether the classic civil service loan is awarded or a normal installment loan on favorable terms, is handled differently from bank to bank. The fact is, however, that there are already several providers in the credit market who also award the particularly favorable civil service loan as a loan for civil servant candidates. This will be explained in more detail below.
As the monthly income of a civil servant is generally not very high, no excessive credit should be sought. Because this is definitely more expensive than the one who can be completed as a civil servant for life. In any case, it is therefore advisable to postpone the real estate financing until the corresponding professional status has been achieved in order to be able to benefit accordingly from the offered benefits.
If only small sums are to be applied for, a normal installment loan or a credit line is also suitable as a loan for civil servant candidates. As a rule, banks will not see any noteworthy problems here, as the civil servant status and thus the prospect of a particularly solvent client, who will hopefully remain with the bank for many years to come.
For example, installment loans can be taken over an extended period of time, so that even a relatively low income is still sufficient to be able to afford their debt service. The application for a credit line is also without problems, even if the maximum loan amounts are still limited, because the decisive factor here is the sum of the monthly income. The amount of the credit line, which is the maximum amount that can be claimed, is a multiple of the regular income and can be increased accordingly if the claimant has in the meantime become a civil servant for life.
What advantages does the civil service loan bring?
A civil service loan is a special arrangement for civil servants, in which the conclusion of the loan agreement is linked to the conclusion of a life insurance policy. Whether official candidates receive such a loan depends, as already mentioned, on the respective bank from which the application is made.
However, an early application as a loan for civil servant candidate can bring the advantage that favorable interest rates can be secured over a very long period of time. And it is precisely the long maturities that make the civil servant loan so interesting, because it can take much higher sums than, for example, in the case of normal real estate financing. At the same time, this is also the main motive for concluding a civil service loan.
The simultaneously concluded life insurance serves to repay the amount in full at the end of the term. It is therefore a bullet loan with a particularly high level of security. Because the life insurance not only secures the borrower from his repayment, but also the bank itself against a loan default, which could be triggered for example by the premature death of the applicant. So if you are looking for a loan for civil servants, you should not miss this opportunity, if it is already available, under no circumstances.