The official loan is aimed only at civil servants, but other professional groups, which are equated with civil servants, can also use the official loan. What is important for the banks in the classification is primarily an (almost) non-terminable, permanent employment relationship with a roughly constant high income.
Who can get an official loan?
From the banks’ point of view, not only civil servants per se are “fully-fledged civil servants”, but also civil servant candidates, probationary civil servants, civil servants or academics, because ultimately the civil servant loan does not distinguish the target group , but rather the double protection of the loan. There are three different groups:
Officials for life
– judges and judicial officers,
– administrators, postal officials and finance officers,
– Police officers and officials in the Border Guard,
– Firefighters and (time) soldiers as well
– probation officers
Employees in the public sector
– civil servants and
– Civil servants
with a minimum period of employment of 5 years each.
Academics on a par with the above groups
– tax consultants and lawyers,
– auditors / business economists as well
who have been able to demonstrate permanent employment for at least 5 years.
Does it have to be an official loan?
Even if the official loan, unlike other loans or a mortgage, offers unrivaled interest rates (up to 50% below the market interest rate for other customers), it should be questioned whether it must be an official loan. In this way, other loans similar to civil servant loans can also be secured with a life insurance and the repayment can only be restricted to interest.
As a result, the official loan, even if the interest is initially cheaper, is in the end hardly cheaper than other loans, because the lack of repayment of the loan amount does not reduce the interest burden over the years. The possibility that the higher interest burden and the additional costs will ultimately be offset by higher distributions from the capital-building life insurance is by no means certain – one must also be aware of this before taking out the civil servant loan.