Banks rate each customer differently, and that is also the case in the individual professional groups. Officials are at the top of the list, giving them special status.
Bank rate for professional groups
This is clearly due to the secure job, which is almost irrevocable, and the fixed income, which is usually very high. With these criteria, a civil servant already fulfills almost all of the conditions that must be met for a loan for a civil servant. Not even a bad Credit Bureau will downgrade officials. Nevertheless, the chances of getting a loan for lifetime officials remain very high.
In addition, an official’s congestion is rewarded with very favorable terms, making the loan very popular with lifetime officials. Of course, as the name suggests, not everyone can take out this loan. For example, teachers, life officials and probation officers, police officers and judicial officers can apply for this loan. Different banks offer a loan to lifetime officials without requiring a lot of collateral. For other professional groups, collateral is standard, since there is a very high risk that the loan cannot be repaid on time or not at all. It is different with an official, the salary that he receives is often so high that there will be no difficulty in paying the installments for the loan.
Officials enjoy special conditions
Since civil servants can meet the most important conditions with their salary and permanent employment and there is no great processing effort, this is rewarded with very favorable conditions. The interest rates are very low, so the monthly installments are also very low. The bank also has special conditions that can be used. With these special conditions, an official can decide when to pay which installments and how much. In addition, the civil servant can decide whether to pay the loan for lifetime officials in installments or, at the end of the term, in a one-off payment. Before the contract is concluded, the applicant is offered life insurance with a loan for life officials, which he or she can take advantage of.
The advantage of this insurance is that only the contributions have to be paid and at the same time the interest for the loan. If amounts of the loan are still outstanding at the end of the term, these are repaid by the insurance company, since life insurance is used as capital life insurance. Officials can decide the loan amount themselves, so that amounts of USD 100,000 are also possible. Since the terms can be up to 20 years, this sum is very realistic. Officials can apply to the house bank or on the Internet for a loan for life officials, although there are very good conditions on both sides.