Banks are free to choose who they lend to and who they don’t. There is no legal obligation to do so. In the same way, consumers can choose the lending bank themselves if they meet the requirements for a loan.
A fixed income is the basic requirement for a loan commitment. Civil servants have it particularly easy. Not only the civil servant is meant here, but also employees and workers benefit from the state as an employer. As of a certain affiliation to the public service, the employees are also non-resignable.
The official loan
There are different types of credit at banks. This also includes the civil servant loan. It differs significantly from other loans. Those who work in the public sector can count on higher loan amounts than another employee. Accordingly, longer terms can be chosen. They also differ from other loans in the amount of interest.
These loans are reserved not only for civil servants, but also for the other permanent employees. Banks see no risk in lending to civil servants. Their income is guaranteed and there is no risk of unemployment. If it should actually happen that a job in the public service has become redundant, only a transfer is possible. Terminations are excluded.
Who grants an official loan?
Every bank grants a loan to public sector employees, because this target group is one of the most popular among banks. The choice of branch or direct banks is large, so that borrowers only have to study the offers to find the best loans. A loan for civil servants can be applied for directly on the Internet. After the formalities have been completed, it only takes a few days for the loan amount to reach the borrower’s checking account.
However, this requires a good credit rating, because credit score is also checked for employees in the public service. Negative entries, however, do not have a serious impact, and in this case the bank also grants a loan to civil servants when the creditworthiness is no longer as good. The employees who work for the state also benefit from this. It does not matter whether you are employed by the state, the federal government or the municipality.