A loan for retired civil servants is possible. Unlike employees, civil servants can apply for retirement without too much difficulty. This is mainly due to the high pension pension that officials receive.
What is a civil service loan?
An official’s loan is often confused with a civil servant’s loan. Anyone who takes out a loan for retired civil servants will never raise a large sum. The term is shorter than a civil service loan.
The loan amount can be chosen freely. This is an installment loan with constant monthly installments. A civil service loan, on the other hand, is often covered by a higher loan amount. In addition, the runtime is very long. Often real estate is bought and financed.
The loan for retired civil servants can be taken out without any purpose.
High service – the best opportunities
Banks often distinguish between retired and middle-aged civil servants. If a loan is to be taken out for retired civil servants, the bank will first check this status. The bank will not complain about the amount of the pension. Officials who were in the senior service often have a pension of around 2600 euros. The attachment exemption limit is about 1100 euros. Thus, this limit is far exceeded. Often there are only problems if the applicant is over 70 years old. Some banks then require additional security. Credit default risk increases the older the applicant is. Banks often demand a residual debt insurance.
Application of middle-aged pensioners
Problems are expected when a mid-level pensioner applies. This gets only a pension of about 1800 euros.
If then the fixed costs are still billed, it may be that it is just above the seizure exemption amount. Banks are not always ready to give credit to retired civil servants.
Collateral should be available in any case. If requested, the applicant can respond quickly and receive a loan. An attempt should be made to keep the loan amount as low as possible. A high credit would not always be possible, as opposed to a small loan.
Pensioner a credit risk?
Officials who have taken out a loan while they are working know how easy it is. But who is retired as a civil servant, must probably learn the first time that he too is a credit risk.
Even though banks would not say who is retiring, it is often too old for a loan. This also applies to retired civil servants, even if they receive a good pension. Banks often set an age limit when borrowing for retired civil servants.
Often this limit is 65 years. Few exceptions are made if the applicant is already over 70 years old. Banks will then only lend if further security is available.
Reduce credit risk
The loan for retired civil servants must often be taken with additional security. This security depends on the loan amount. When the loan for retired civil servants goes up to 5,000 euros, often no security is required.
But if the amount is above that, then it may well be that a co-applicant is required. Banks often try to sell a residual debt insurance. This should not be resorted to if other security is available. Applicants could provide their life insurance as collateral if the insurance company allows it.
A co-applicant would be even better. With two borrowers, the loan would be secured for retired civil servants.
Credit comparison for civil servants – the loan for retired civil servants
A loan for retired civil servants should be compared. Since not all banks grant this loan, the lender can be found with a credit comparison.
The comparison does not just help to find a bank. Customers can get so favorable interest rates and take advantage of the special conditions. not everyone has the same offer, so the comparison helps get exactly the loan the officer wants.
The details in the offers shows which conditions have to be met. Furthermore, retired officials see the terms and conditions and whether special repayments and installment breaks are possible.
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