Civil servant loan – soft loans for civil servants compared

A civil service loan can only get the one who is actually also civil servants. The official has always been one of those borrowers who, from the creditor’s point of view, is particularly creditworthy. Civil servants are often referred to as public servants. They are not contractual employees, but they are appointed to the civil service with a certificate to the official. The public service includes public authorities, corporations and institutions under public law as well as other institutions and organizations at the federal level, in the federal states as well as in the municipalities, the local municipalities.

The appointed for life officials can not be dismissed by his employer. As the term “for life” expresses, the documentary appointment takes place for the entire duration of the employment. At the same time, this job security ensures the regular monthly income. Workers receive wages, employees their salary, and civil servants the salary. Against this background, from the point of view of banks and savings banks, the official is an almost ideal borrower for civil service loans. As a result, civil servants usually also receive very low-interest loans .

 Civil servant loan - soft loan for civil servants  


  • 1 Civil service loan – self-sufficient loan product with high security
  • 2 High Civil Service Loans for Administration, Teachers, Police and Justice
    • 2.1 Credit for civil servants
  • 3 Final official loan combined with endowment life insurance
  • 4 loan calculator for civil servants
  • Compare and apply for 5 official loans online

Official Loan – Standalone Loan Product with High Security

 Official Loan - Standalone Loan Product with High Security

The term civil service loan is not protected, it is also no own loan or loan form. The designation is based rather on the professional function of the borrower. He is an official. Until the civil servant is appointed a permanent civil servant, he “passes through” the various career stages as a probationary, revocation, and temporary civil servant. During these years, the official has to prove himself both on duty and off duty, as it is called. He is expected to serve as a role model both privately and professionally. Administrative offenses or even punishable acts are not only prosecuted under civil law, but also tracked and evaluated under civil service law. The driving license withdrawal for alcohol reasons can certainly be registered in the personnel file. This has a negative impact on later promotions or appointments to civil servant status.

The offer of a civil servant loan has therefore always been aimed exclusively at the group of civil servants. Over the past few decades, credit institutions have increasingly resorted to extending this “non-terminable official” requirement to non-negotiable public sector employees. Their job is comparably safe after a given number of years of service, but not as “bomb-proof” as the civil service status for life. While civil servants are completely excluded from the risk of default due to job losses, this is largely the case for civil servants. There are virtually no civil servants in this day and age. Their areas of activity, such as the municipal cemetery or the city nursery, have been outsourced by the municipalities into individual companies. The workers employed there only rarely have comparable job security as employees or even civil servants.

High official loan for administration, teachers, police and justice

The credit institutions are free in the interpretation and offer of their respective official loan. In some cases, a five- and several-year employment with the same civil service authority is sufficient to provide a loan of very favorable annual interest. There are literally millions of potential borrowers nationwide. They range from administrative officials to judicial officers to judges and prosecutors, to law enforcement officers to the police, to full-time teachers, to civil servants and to professional soldiers. For the lender, it is easy to check the income situation of the civil servant or employee in the public service and to make a short financial check. Nevertheless, even for the officials a short credit comparison with a loan calculator is worthwhile. Since time immemorial, the maximum limit of the civil service loan was based exclusively on the salary and the current marital status. The term was and is still significantly longer today than in other consumer loans . They usually have to be repaid after seven years.

Credit for civil servants

The normal term for the civil service loan is 120 months and is extended in many cases by a further 60 months to a total of 15 years, which, of course, significantly better credit conditions than regular consumer credit for unofficial employees or self-employed. Nevertheless, interest rates still play a major role, of course. And other important points, such as special repayments or installment breaks on civil servants’ credit, must be taken into account. The likelihood of a loan or credit application being submitted by the credit bank is very high, but it still depends on net income.

For the lender this is almost without risk, because the subsequent civil service pension is guaranteed by law. The official, even if he wanted to, for legal reasons could not do without his later pension. The character of a loan is that, with a good or very good credit rating, the effective interest rate decreases as the loan term increases. This is evident in a long-term loan for civil servants and academics. Officials and employees pay less interest on consumer credit in the form of a installment loan with a visibly longer loan term bottom line and therefore enjoy preferential conditions compared to other professional groups. Basically, the civil service loan is similar in its long term with a real estate financing and the associated first fixed interest period.

Final official loan combined with endowment life insurance

Civil servant loans are almost always worthwhile

Depending on the form of loan, loans for civil servants are particularly worthwhile

The special feature of a civil service loan, so to speak with a unique selling point on the credit and loan market for consumers, is the combination of loans and life insurance. It is possible because the long term of the official loan corresponds with the term of a life insurance policy from twelve years upwards. Civil servant loans are thus in principle a special loan. Together with the civil service loan, a capital life insurance of at least the same amount is concluded and simultaneously assigned to the lender.

It is due exactly when the final repayment installment for the Civil Service Loan becomes due. The monthly payment for the loan is limited to the interest. The monthly repayment installment is replaced by the contribution for life insurance. Definitive in this sense means that the official loan at the end of the contract is due in one sum for repayment. This loan repayment is made from the life insurance ceded to the lender. The insurer transfers the due loan amount directly to the bank. The remainder will be paid to the borrower, ie civil servants or civil servants.

This is usually the case with accumulated interest and surpluses from endowment life insurance. With this peculiarity of the civil service loan, the public sector borrower kills two birds with one stone. He gets paid a high long-term civil service loan at the lowest possible lending rates, and he secured this loan debt from the beginning with a life insurance policy. This is also due for the premature death of the policyholder. Another component is the payment of twice the insured sum in case of accidental death. The family members of the borrower are at the time of his death prior to the expiry of the contract debt. In a similar way, real estate financing is covered by term life insurance.

The status of civil servant also helps relatively low-income employees to obtain a relatively long-term loan. This group of persons includes those in the lower and middle civil service, as well as the equivalent of today’s TVöD, the collective agreement for the public service remunerated employees. Decisive and decisive for the positive award of a civil service loan are the security of the job and the associated income guarantee. In contrast to companies in the private sector, public authorities, institutions and organizations can not go bankrupt. Moreover, according to the constitutional principle of “alimentation” of the respective authority, its most urgent task as employer is to provide the servant with adequate livelihood during his active service and in the subsequent rest period. In short, before renewing the street or rehabilitating the local school, salaries and pensions must be funded for the active as well as for the retired civil servant. That always has priority.

A well-known and renowned provider of civil service loans is the general official bank .

In conclusion, it should be noted: the civil service loan is low-interest and safe

  • The concept of civil service loan, strictly limited to civil servants in the past century, has visibly weakened at the present time.
  • A key reason for this is the competition among the lenders in the award of a “surefire loan”.
  • The group of people for such a long-term consumer loan has been extended from civil servants to employees, in some cases to workers.
  • The criterion of “public service” has remained unchanged in the allocation of civil service loans, but has been adapted to the present situation with multiple privatizations by former state authorities such as postal and rail.
  • From a credit standpoint, the safest person to remain as a borrower is the lifetime civil servant, since the late 2000s, without the previous minimum age of 27 years.
  • The combination of official loans and endowment life insurance is still unique today.

Loan calculator for civil servants

 Loan calculator for civil servants

There are no lump-sum loan accounts for civil servants , but almost every credit provider has a query of the profession and income in the respective loan calculator until later in the online loan application. Here, officials can then select accordingly and then get a better credit rating as a rule, as well as other applicants.

Compare and apply for civil servant credit online

 Compare and apply for civil servant credit online

The official loan can also be easily compared and requested online. Almost all credit providers offer in the online loan applications the possibility to indicate as a status or profession “officiated”. Nevertheless, officials should also locally inquire at the house bank, to have an additional means of comparison.

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