Cheap Loans for Officials, Academics and Public Service Employees


Security is the top priority in the lending business. Every bank wants financially strong credit customers who have secure employment relationships and can easily deal with the repayment. Officials come closest to this ideal.

They have an above-average credit rating and are rewarded with preferential terms by the banking industry. A special financing, the civil servant loan, was even developed for these “premium customers”. This is final financing that is linked to a capital life insurance.

Special features of the official loan

Special features of the official loan

The official loan offers some advantages that ordinary borrowers cannot claim for themselves. The civil servant loan has a comparatively large credit line, it is based on the borrower’s income, the maximum limit is approximately two net annual incomes. The borrowers only have to shoulder a small monthly charge; in the case of final financing, the repayment rates consist of a low interest component and contributions to the life insurance.

The insurance policy includes a guarantee amount that corresponds to the volume of the loan and is paid out at the end of the loan term. The borrower can use the income from the capital life insurance to repay the loan in one sum. This model offers benefits in monetary terms, after all, the insurance premiums bear interest and thus generate profits for the policyholder. In the best case scenario, the insurance company even generates surpluses that flow proportionately into the pockets of the insured.

No residual debt insurance is required to secure the official loan, the capital life insurance would step in in an emergency, for example if the borrower dies, and the loan will be paid off in full. In conjunction with the secure job and the high income of the civil servant, the life insurance provides maximum credit security. As a result, the banks are satisfied with comparatively low lending rates and grant extremely long terms of 12 to 20 years.

Compare admission criteria and conditions

Compare admission criteria and conditions

The banks are completely free to choose who they give an official loan to and who they don’t. Some admit only civil servants for life, the others also probation officials or even academics and civil servants. Anyone who belongs to one of the groups mentioned should definitely try to get a civil servant loan.

The credit comparison is a must, everyone should take the time and check the credit terms of the top providers, it is worth it. Due to the usually long term, small interest rate differentials can amount to several thousand dollars.

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