Civil servants enjoy almost the same privileges as civil servants. They have special conditions with car insurance and have particularly good cards with the banks when it comes to a loan for employees in the public sector. Those who have been employed in the civil service for many years can practically not be dismissed without a valid reason.
Therefore, workers or civil servants are usually not at risk of unemployment. This special professional security naturally also affects the relationship with the banks. After all, they are happy to grant a loan to public sector employees.
Longer terms and low interest rates
Civil servants, like civil servants, benefit from longer terms and low interest rates. That’s what a crisis-proof job entails. The banks do not have to reckon with the failure of state payments to pay the installments. They can only be terminated if they are guilty of particularly serious misconduct. Otherwise they keep their job until retirement. If the creditworthiness is good, a loan for civil servants will not be denied.
The banks literally roll over with attractive offers for the state’s employees. Everyone wants such employees as customers. That is why a comparison is worthwhile, because there are plenty of differences between the individual banks. The possibility of free repayment is just as important as the amount of interest. It depends on the effective annual interest rate, because this already includes all costs. In most cases, however, banks advertise net interest, which is significantly lower than the interest actually payable.
Borrowers take out residual debt insurance
Incidentally, every consumer should pay attention to this and not just public service employees. Some banks like to see borrowers take out residual debt insurance. However, this is not always worthwhile, because it only makes a loan more expensive. However, when it comes to large amounts of credit, such as real estate financing, the borrower should always take out security so that the family does not have to pay the costs.