When a teacher wants to apply for a loan, they usually get an official loan. This special credit for teachers is granted because this group of people has a special status with banks. They do not lose their jobs, no company can apply for bankruptcy and the income is quite high. So it is not difficult for teachers to find a bank that grants a loan.
What conditions and requirements are there?
Banks give teachers a loan for civil servants. These are always given with special conditions. The borrower not only receives a loan, but also life insurance. This is paid with the contributions, while the installments for the loan are pending. When the term ends, the contributions are used to repay the loan. This not only has the advantage that the contributions are very low, but the family of the borrower is well protected.
If something happens to the teacher, the family does not have to repay the loan. In the event of death, life insurance will step in and the loan will be automatically repaid. Teachers do not have to meet any special requirements for a loan for teachers. The only condition attached to this loan is that legacy issues have to be paid first. Either that is done with equity or with the new loan. Only then can the borrower freely issue the loan to teachers without justification.
Is a credit comparison important?
Teachers in particular will quickly find that the supply of credit is enormous. So it is often confusing when a loan has to be taken out. A loan comparison filters out black sheep that only want to sell insurance, reveals the actual costs and shows how expensive the loan with all the additional costs is. This has the advantage that it can be seen before a contract is concluded how much money the loan costs and whether it fits the personal needs of the applicant.
Why do teachers get the civil service credit?
Banks are always safe when it comes to lending money. You earn money with it and of course want to see it again. If someone applies for a loan that is not as creditworthy, the bank takes a risk. In the worst case, the loan rates fail and the bank loses money. Teachers have excellent creditworthiness. As a rule, a high sum is taken up with a civil servant loan. The higher the sum, the higher the bank’s earnings. Good conditions are always rewarded with excellent conditions.