The professional soldiers, whose status and material situation are secured by the state, are always very welcome at the banks when it comes to borrowing. A permanent job guarantees the Bundeswehr members stable income, so the banks can be sure that the borrower will not have any financial difficulties with the repayment and will not be unemployed. The economic crises and other risks are also excluded for the Bundeswehr soldiers because they cannot be terminated, which is why the banks are happy to provide better contractual terms for this professional group. A tempting offer package with special products such as pension insurance or life insurance make borrowing even more attractive for customers.
Civil servant loan
Since the professional soldiers have the status of a civil servant, they can apply for higher loan amounts – up to $ 250,000 – and longer terms of a loan – up to 120 months – which is almost always approved by the banks. The credit limit results from the salary level of the Bundeswehr employee. Furthermore, as a professional soldier, one can count on customer-friendly interest rates and low installment payments, which the banks are happy to offer in order to gain an official as a long-standing customer. The credit institutions do not have to worry about the payment, because the Bundeswehr soldiers are traditionally characterized by a high level of discipline and high payment behavior.
The conditions of the loan are somewhat different for the temporary soldiers who have no permanent employment but are deployed for a certain period of time. In this case, unfortunately no civil servant loan can be applied for, since the temporary soldiers have no civil servant status. When lending to temporary soldiers, the banks primarily pay attention to the time limit in the Bundeswehr and the creditworthiness of such borrowers. The term of the loan is then adjusted to the period of service or ends with the expiry of the employment contract, which a temporary soldier should have accordingly. A positive information from the credit bureau (protection association for general credit protection), without overdue invoices and other conspicuous notes, proves the high sense of responsibility and the creditworthiness of the customer and creates a good condition for the approval of the loan. If there is no credit bureau information available, temporary soldiers can also get approval for the loan money through the credit intermediaries.
When to borrow
Before deciding to borrow, it is best to inquire with a credit advisor and possibly negotiate the terms of the loan agreement, especially when it comes to larger loan money. Above all, as a professional soldier, you can request a free special repayment to possibly repay a loan faster than planned. Get particularly detailed information about the possible stumbling blocks and hidden rules for paying off the loan. You can also save money with an online comparison, where you can choose the cheapest variant of the loan in special portals under different conditions from banks and savings banks. Also worthwhile are offers from special providers who only have employees in the public sector as customers and can therefore afford the best interest rates.