Civil servant loan

A civil servant loan is a loan that various financial institutions give to civil servants . It is not a stand-alone product. The term is not protected, so that providers offer a wide variety of forms of credit under this name.

Officials and civil servants as borrowers

Due to the high level of job security, civil servants and public sector employees have a reduced credit risk. Banks and insurance companies can therefore offer this group of customers a relatively low interest rate.

The borrower usually has to be either a civil servant, civil servant, police officer, teacher (civil servant), professional soldier, judge, judicial officer, post office worker, civil servant on probation, academic (civil servant) with a permanent position of at least 5 years or a pensioner.

Expressions and commercial use of the term

In principle, all types of loans can be referred to as civil servant loans. In practice, consumer loans in particular are advertised as civil servant loans in Germany. Relatively long credit periods are often offered here.

Civil servant loans are often combined as a bullet loan with a borrowed capital life insurance , which is newly concluded. This is borrowed in the amount of the sum insured. Only the interest plus the insurance premiums are paid by the borrower over the entire term. The civil servant loan is then repaid at the end of the term by the endowment insurance taken out. Any surplus participation from endowment life insurance is paid out to the borrower at the end of the term.