To have the state as an employer, that is almost like a small lottery winnings on lending. More security in the solvency of the employer, no bank in the world can wish. The installment loan for civil servants impressively proves the positive effects of civil servant status in terms of both interest rates and maturities.
The installment loan for civil servants – why is it so cheap?
Virtually every financial institution offers him, the installment loan for civil servants on special terms. The really favorable interest rates for civil servants, judges and employees in the public sector are all about credit security. No occupational group is as highly rated by officials as officials. First, it is the officials themselves who are responsible for this reputation. An official pays – almost with Prussian thoroughness – his debts virtually always back. Credit losses are extremely rare. The installment payments are almost always made punctually on the due date. Late payments are unusual among civil servants.
Job security also plays a major role in the good ratings. A lifetime civil servant can not be dismissed and, even in retirement, receives significantly higher salaries than a pensioner of comparable career. The state as an employer is also unbeatable in terms of payment security. The state always pays and extremely punctual. Financial imbalances of the state, as they can also hit large companies of the private sector, are practically excluded. Each lender therefore seeks officials to win for its financial products through favorable interest rates and other special conditions. For the granting of credit the security of the repayment has the highest priority.
Specialists can offer very low prices.
In the case of direct banks, a small group has specialized in civil servants and other civil servants. Their offers fall by extremely low interest rates and especially by extremely long terms of the frame. These offers are made possible by the fact that they can only be used by public servants. Regardless of position and income, people are excluded from other job profiles.
This specialization strategy pays off in particular for providers and borrowers. Provisions for writing off bad loans can be waived by the special providers. You do not have to fear a credit risk. Part of the savings is passed on to the borrowers, thus reducing the interest on the installment loan for civil servants. The amount of the pension and, above all, the good coverage in the case of illness-related leaving the working life also bring economic benefits.
No credit becomes distressed just because the borrower falls ill or retires. This explains the opportunities to complete financing with extremely long maturities. Loan offers for the “ordinary citizen” is over for a term of about 10 years. The installment loan for civil servants can in extreme cases even have twice the duration.