Credit for civil servants
Civil servants interested in a loan will receive the same conditions from the bank as a lifetime official. Although they are not irrevocable, they do have a crisis-proof job. That alone is often enough for banks to easily issue a loan to public sector employees. This means that people in this professional group have a special status with banks and can choose the bank where the loan should be applied for. See upstategreencab.com for an observation
Advantages in borrowing
Civil servants have many advantages when taking out a loan. The loan amount that can be taken up is 20 times the net income. The term is often 20 years, so that even larger purchases can be made immediately. Applicants must take out capital life insurance.
But this has no disadvantages, just an advantage. They are secured when they take out the loan for civil servants. The loan is repaid with the insurance premiums, which are very low. If something should happen to the borrower and, in the worst case, die from different circumstances, then the family does not have to repay the loan. In such a case, the life insurance then takes over.
What needs to be considered?
In order for a loan to be taken out for public sector employees, the bank requires that all existing loans be replaced with the new loan. This guarantees that the borrower does not become over-indebted and can actually repay the new loan. Only then can the borrower freely dispose of the loan amount and do not have to give reasons for what the money is needed for.
If the borrower makes a comparison, he can find the best deal. A loan is not always on offer with the same interest rates. The credit institutions work independently of one another and therefore all have different terms. The bank will not make an official loan offer to the civil servant.
If you want this special credit, you have to ask for it yourself. Only then is a loan granted. Banks make money with loans and want to do business with higher interest rates. It is therefore important that it is immediately mentioned when applying that it is a loan for civil servants.