The civil servant loan is a discounted loan that banks grant to civil servants and some other professional groups. In addition to an official loan without a purpose limitation, financial institutions offer corresponding loans for demonstrable purposes, such as real estate loans and car loans. In this case, they discount the loan interest on the one hand for the target group and, on the other hand, on the basis of the purpose of the loan, which is rated as worthy of support or is associated with special security.
Who gets the civil servant loan for the car?
The civil servant loan for a car is available from almost all financial institutions offering special civil servant loans in addition to civil servants as well as civil servants. Church officials and rabbis, like professional soldiers and judges, are treated as civil servants when it comes to lending, most banks also give cheap loans to temporary soldiers. When lending to temporary soldiers, however, they mostly require that the loan be repaid until he leaves the service.
Employees of public law organizations such as health insurance companies and state broadcasters are usually considered to be employed in the public service with regard to lending. A large number of credit institutions are extending the circle of those eligible for a civil servant loan to employees of private companies who have worked for many years. These are just as down-to-earth and reliable as civil servants and civil servants, so that a civil servant loan granted to them for a car or other use is associated with low default risks.
The financial institution passes on the low credit risk to its borrowers in the form of low interest rates on official loans. However, the designation of a loan offer for vehicle financing as an official loan must not lead to its unchecked acceptance. The expectation of consumers that a civil servant loan is always cheap is exploited by reputable lenders to a limited extent by calling loans with excessive interest rates as civil servant loans. Anyone who does not forego the loan comparison receives an inexpensive civil servant loan for the car.
The cheap car financing
When it comes to car financing, independent commercial banks compete with the car banks of the individual manufacturers. The dealer’s offer for vehicle financing is made regularly at an apparently unbeatable interest rate. The fact that customers nonetheless take out a civil servant loan for a car from a commercial bank is due to the fact that dealers only grant small vehicle discounts when they arrange vehicle financing.
When it comes to vehicle financing, it is customary to deposit the Part II registration certificate with the bank paying the loan; some institutes do not provide this security for an official loan for car financing. The security assignment of the car to be carried out until the official loan has been paid in any case takes place anyway through the corresponding clause in the loan agreement and not through the handover of the vehicle document.
In most cases, the bank grants the official loan for a car as a traditional loan with or without a down payment or final installment, while the three-way financing is still rarely offered as an official loan. Only a few banks offer used car financing as a civil servant loan, although most of them require a maximum age of the car to be granted special conditions.