A small loan for civil servants is a normal installment loan with a small loan amount. Here, the credit line is between 500 euros and 5000 euros.
For some providers, the official but can also take a small amount. The loan offers many benefits to the official.
Benefits for officials
With a small loan for civil servants, the advantage lies in the low monthly installments and a quick repayment. Civil servants can choose between 12 and 36 months for this loan.
In individual cases, however, the bank may also offer shorter or longer terms. The tied interest rate on a small loan for civil servants, the interest rates are very low. The official can arrange special repayments. This way, he can shorten the term and thereby save the interest.
As a rule, it is planned to use a special repayment once a year. The loan is often used to bridge financial bottlenecks, such as repayments or small purchases.
As a civil servant, you have a lot of bank benefits when you take out a small loan for civil servants. Favorable interest rates are mainly guaranteed by the small amount and the short term. As interest rates are very low, that’s another advantage.
The annual percentage rate is often very low. This is mainly due to the professional status of the official. This has an almost non-terminable employment relationship. This is rewarded by banks with low interest rates, which makes the loan very cheap.
In the effective annual interest, all costs are included, so that the customer can count on the same installment payments. Officials are very popular, so that almost every bank can take out the small loan.
Requirements of civil servant credit
One of the most important requirements for civil servants can definitely be fulfilled. This has a permanent employment contract, which is almost non-terminable. This guarantees the bank that the employment relationship will still exist in many years’ time.
The small loan for civil servants is not endangered, the bank does not have to fear a loan default. The applicant is of legal age because it takes a long time before he has completed his education and is a civil servant. Thus, the second condition is met.
Civil servants have a regular income, which is quite high. Thus, the third condition is also satisfied. Now only the good Private Credit is missing, which has to be proven.
Required documents for the small loan for civil servants
Who wants to take a small loan for civil servants, must be able to present some documents. The information is needed by the bank in order to be able to classify the creditworthiness.
These documents include proof of income as an official. If loan agreements exist, they must be presented. The ID must be presented in a copy from both sides. In addition, the bank details must be known.
This must be in Germany, as well as the confirmation of registration. In the case of foreign banks, civil servants must carry out the Postident procedure. This confirms their identity in a post office.
In the case of a small loan for civil servants, no further collateral security is required. The fact that the official is not terminable and thus has a secure income, the bank as a security.
The small loan itself will be redeemed in a few months. A credit risk does not exist, such as with an employee. This can lose his job at any time, which is not the case with civil servants. A loan security with officials forms the income and the employment contract.
The small loan is only at risk if the official has a negative Private Credit. This will make it difficult to get a microcredit. As with employees, the score is checked.
Select correct bank
The selection for a small loan for civil servants is very large. Officials are among the favorite customers because they provide the most collateral. Therefore, the customer should be well informed before taking a loan.
Even if the loan amount is not very high, you can save money. The offers for a small loan are very different. Although the favorable interest rates can be found at all, but still worth the look behind the offer.
Many offer the official special conditions that vary. After a credit comparison, the official should be able to decide which bank is the right one. A credit comparison should be able to help quickly. This one is free and easy to use.