Official loans not only for civil servants



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?

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

– Teacher,
– 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,
– Doctors,
– auditors / business economists as well
– architects
who have been able to demonstrate permanent employment for at least 5 years.

Does it have to be an official loan?

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.

Instant loan supported Finland over the recession

In an article published in an interview with Olli Rehn, which dealt extensively with the post-financial crisis debt growth. In the interview, Rehn highlighted the correlation between the rise of the recession and household indebtedness. Now it has finally been said by someone.

The role of instant messengers, consumer credit and credit cards as drivers of growth has been obvious. The same trend of indebtedness can be seen in our western neighbor Sweden. In both countries, household indebtedness has been strong in recent years.

“- The indebtedness of Finnish households is at a record level when used as a measure of debt relative to annual income. At the turn of the millennium, debt was well over 60 percent, now 128 percent, ”says Olli Rehn.

Household incomes are increasingly being used as housing costs


Low-income people are, of course, the first to feel the increase in fixed costs. However, suction in growth centers is often achieved through large housing company loans. New homes are traded for a small fee and for the first two years of repayment leave. After two years, the loan management costs are already quite high in an average 400k USD apartment.

Everyday expenses and purchases will be financed by credit cards and interest-bearing financing options in your wallet. Bank loans and credit cards are in the pipeline, additional spending is ultimately financed by instant loans and instant loans. Anything else goes towards financing the increased standard of living.

The equation cannot stand the setbacks to the personal income that everyone had to experience in bad years. Weak financial years were spent on hand-to-mouth and closing gaps in credit cards and consumer credit. At the same time, the dollar area was revived by central banks.

“The stimulative monetary policy has been justified in order to avoid a deep recession and deflation. One had to realize that it had its own consequences. The challenge now is to ensure that households are able to properly assess their borrowing capacity. ”

“- The biggest concern is that mortgage loans are used to market new homes at a relatively low cost. In a few year’s time, a single-family will be able to pay off both full financial consideration and substantially higher interest rates. ”

Without a positive credit record

Without a positive credit record

The problem will escalate with the coming recession. And it’s already at hand. The gradual rise in dollar area interest rates, coupled with weak Finnish competitiveness, will continue to cause labor market shocks. These shocks will continue to shake debtors in an unprecedented way. Accustomed housing prices are at risk when you have to give up a home that is too expensive, dictated by necessity.

The debt burden can trigger a domino effect that goes to the heart of banks through the housing and mortgage markets. Big mortgages can peel off the junk that shakes the banking sector. The Good Finance banks and the housing market are linked through financing. Indeed, this time the financial crisis can start with private households.

Credit Scores Become Determinants of Your Credit Received

The rapid progress of transportation technology responds to manufacturers and distributors of motor vehicles competing extra. Purchasing on credit is one of the positive solutions to meet the current demand for consumer vehicles. This also makes the financial institutions to conduct a series of credit analysis of credit applications for prospective consumers to anticipate the amount of credit risk that will occur.


Credit Scoring is one of the mediations

Credit Score

In analyzing the feasibility of potential consumer credit facilities. In this study, there are seven test variables used in this study, namely, approval variables, advances, OTR prices for interest on loans, payment tenor, vehicle conditions, and gender. The results of the research that were carried out turned out to only have four variables that influence the decision on the approval of credit facility eligibility, namely the down payment variable, OTR price, loan interest, and payment tenure.

Although the public is facilitated by special offers with affordable advances, the company also carries out a series of credit analysis processes for each consumer who submits a loan application before approving it. The series of processes begins with the vertel process, namely the existence of customer application documents to the dealer, followed by bringing surveyors to the homes of each consumer to request customer document requirements. Then it will be followed by a credit analysis conducted by the company. The credit analysis process in the process requires time that is not short.


Motor vehicle credit business and the limitations to analyze consumer credit

Motor vehicle credit business and the limitations to analyze consumer credit

Documents per day encourage the company to innovate and improve the existing credit analysis process. The process innovation and improvement referred to is by trying to make a credit scoring model (Credit score) that is not yet owned by the company, then the model will be used to help provide the results of a proper credit worthiness analysis of applications for consumer credit per day.

Credit scoring obtained will be useful for the company in determining the eligibility of credit, for example, consumers want to apply for car loans, consumer credit scores will be seen more precisely and faster. The company’s decision to accept or reject a consumer credit application is based on a credit analysis or credit score as the Giant Score provides based on the document forms that have been filled out by potential customers.

The form contains all the detailed information about the personal prospective customer, starting from the name, marital status, income per month, up to the expenses that must be spent by prospective customers each month. In many cases of scoring systems, with a high value of scoring will reduce the value of risk, and the crediting company that provides credit services can determine the calculation limits for accepting or rejecting consumer credit applications based on the value of risk owned by the consumer’s digital credibility.