Most civil servants have no problems receiving a loan today. The reason for this is above all the extremely secure income, because as a rule, an official is not terminable. Despite this, some officials still struggle to get a suitable loan.
One possible cause is a negative entry in the Credit bureau, as this usually results in domestic credit institutions not granting ordinary credit. In the following guidebook we would like to inform you about which loans you can use in principle as an official and in which situation the loan for officials without Credit bureau can be useful.
Which loan types are available to officials?
Of course, which forms of credit are also the right financing solution for civil servants depends primarily on their purpose. In principle, officials have access to almost all loan types offered by the banks. These include first and foremost the standard loans, such as:
- Classic installment credit
- Real estate loans
- credit Facility
- car loan
- credit line
For example, if you as a civil servant want to buy a new car or finance some other consumer spending, you can start with a normal loan, which will usually be an installment loan. The advantage of these ordinary loans are often favorable conditions, which officials can receive mainly because of their mostly excellent credit rating.
The extremely secure income that officials always have is, in fact, equated by many lenders with excellent credit ratings. However, before deciding on a normal loan, we recommend that you make a detailed comparison. Not only should you include ordinary installment loans, but also more specialized loan types, such as the Civil Service Loan.
When can the official loan be the right financing solution?
While a normal installment loan for civil servants is particularly suited to small and medium-sized consumer spending, some consumers naturally also have a slightly higher capital requirement. In this case, often offers a special loan, which is offered by various banks under the name official loans. This is usually a so-called bullet-financing. This means that the civil service loan is usually combined with a life insurance policy or a private pension scheme. The civil service loan is thus one of the so-called special loans. These are loans that the banks only make to specific customer groups or that are intended for a specific purpose.
The following table shows which of these special loans the banks still offer alongside the official loan and who can use these loans or for what purpose they are intended.
|credit designation||Customer / purpose|
|Education credit||Trainees and students (of age)|
|Loan for the self-employed||Self-employed and freelancers|
|car loan||Cars and motorcycles|
|holiday Credits||Holiday trip, recreational trips|
|retiree credit||Seniors and pensioners|
|relocation loans||Moving and renovation|
For the official loan, the borrower only pays the interest during the loan term, while the repayment is suspended until the due date. When the official loan matures, the entire amount of the loan must then be repaid in one fell swoop, resulting from the capital assets accumulated in the capital life or private motor insurance.
In practice, such civil servant loans often involve a very favorable interest rate. Among other things, they are suitable for the following financing projects, where a slightly larger loan amount – often beyond 50,000 USD – is needed:
- Renovation measures at the house
- Major renovations
- Buying a luxury car
- World Travel
While the normal loan is also suitable for civil servants, especially for ordinary consumer spending, the civil service loan is usually the better alternative when larger financing projects are pending.
When is the loan for officials without Credit bureau useful?
The two aforementioned funding alternatives are often very cost-effective ways for civil servants, in particular, to finance consumption or investment. But sometimes banks also reject loan applications from civil servants, which happens especially when there is a negative entry in the Credit bureau. Safe income is always only part of the creditworthiness, while a clean Credit bureau is also presupposed by most credit institutions. But what can civil servants do if they have a negative Credit bureau entry, such as a dunning notice or improperly settled loans?
In these cases, in particular, a so-called loan without Credit bureau or a loan for civil servants without Credit bureau offers. For example, as is explained very well on smava.de, a loan without Credit bureau is a loan in which the lender renounces the usual Credit bureau query. This in turn means that, for example, the loan for civil servants without Credit bureau is awarded even if a previously mentioned negative Credit bureau entry exists. The big advantage of a loan without Credit bureau is therefore above all that the negative Credit bureau information is no obstacle to financing.
However, there is at least one disadvantage, namely that loans without Credit bureau are usually awarded at sometimes even significantly higher interest rates than is the case with ordinary installment loans or even civil servants’ loans. Therefore, as an official, you should opt for these funding options only if you actually have a negative Credit bureau entry or, for some reason, do not want the credit to be taken on to Credit bureau. When it comes to loans for officials without Credit bureau, it is not just the case that the lender waives the Credit bureau information. In addition, the loan taken out is not reported to Credit bureau, so that a credit line that may exist at a bank is spared.
Under what conditions is a loan granted without Credit bureau?
If we speak of a loan for officials without Credit bureau, then this is a loan without Credit bureau, which is specifically awarded to civil servants. Otherwise, this loan variant is identical to all other loans without Credit bureau, which are also awarded to an employee or self-employed for example. Among other things, this means that civil servants must also fulfill certain conditions if they wish to take out a loan without Credit bureau. Of course, depending on the lender, these requirements may vary, but as a rule, the following conditions must be met by the official if he wishes to borrow without Credit bureau:
- Residence in Germany
- Income from dependent employment (probation period over)
- Income must not be ceded
- Minimum employment with the current employer
- Age limit (often up to a maximum of 60 or 65 years)
Since the lender waives the loan without Credit bureau already to obtain a Credit bureau information and thus an important credit rating, a sufficiently high and fixed income is even more important. Of course, civil servants have no problems at all on this point, as their civil servants are considered safe and they themselves are considered almost non-terminable.
In general, however, income must also be suitable for civil servants to pay the calculated loan installment. This means, in particular, that the lender will not only pay attention to the amount of the civil servant’s salary, but will also question the regular expenditure in this context. Only if the income is higher than the monthly expenditure and thus a freely disposable income exists, the credit will be approved without Credit bureau.
Conclusion on the loan for officials without Credit bureau
Normally, civil servants have free choice in the credit market, as they are considered very good creditworthiness due to their safe salary in the vast majority of banks. For example, civil servants can use ordinary installment loans or opt for a low-interest public sector loan, which is suitable for larger financing projects. However, if officials have a negative entry into the Credit bureau, it will be difficult for them to get funding. In this case, however, are so-called loans without Credit bureau, which are also awarded as loans for civil servants without Credit bureau. The Credit bureau information does not matter in this case, but the credit rating is fixed exclusively on secure income. In this way of financing, civil servants who do not have a clean Credit bureau can also get a loan.