How to take out a loan for police officers

Police officers are attached to civil servants and the civil service, which makes them non-cancellable. Nevertheless, her financial payment is not exactly rosy, because it does not meet the demanding requirements that a police officer is exposed to.

When it comes to lending, the status of civil servants is rated as good by the banks. The reason is that a civil servant cannot be terminated and the monthly income is therefore secure. This secure job is rated by the banks in a credit line with a particularly low interest rate and a long term. If an official takes out a loan, the lender can still expect his money to be repaid in a few years. Another advantage of the official loan is the monthly installments, which are comparatively low compared to normal loans.

Positive feedback from the banks

Positive feedback from the banks

With the loan for police officers, the banks have created a framework that allows them to lend large amounts of credit, since the officer as a police officer has an advantage over a non-official borrower. Since the conditions are very favorable, more officials are also opting for the police loan. So police officers have much more chances to get the loan when making large purchases. The purchase of a new car but also construction finance is subject to particularly favorable guidelines. One can say that for almost all of an official’s consumer wishes, the banks give the police a loan because of the high level of security that the borrower brings with his secure salary. Thus, both the police officer and the financial institution are doing good business. A loan refusal is rarely given, on the contrary, the approval is usually quick and uncomplicated.

Life insurance as additional security

Life insurance as additional security

In order to provide the bank with additional security, the loan for police officers can also be linked to life insurance. In this way, the borrower not only provided the bank with additional security, but also created a profitable pension for himself. If a surplus is reached after the loan has been repaid, the official can expect the surplus to be paid out. This pattern can also be used to provide for relatives. If the borrower dies before the loan expires, his heirs are secured, because in this case the life insurance taken out assumes the remaining debt. The coupling of credit and life insurance should be completed with the possibility of special payments on the loan, as well as flexible repayment options.

The policeman’s credit rating as a civil servant is rated highly

The policeman

With all the advantages that a loan offers for police officers, the banks still impose conditions for the granting of a civil servant loan. If there are other obligations, here a home loan is excluded, the bank demands that these loans be repaid. A workaround for this requirement is the Swiss loan, which many police officers use. Because it is approved without Credit Bureau information, so it does not appear in the German Credit Bureau, so the bank that issues the civil servant loan does not receive any of this secondary credit. However, it should be considered whether the official does not undertake the repayment. After all, the foreign loan also wants to be serviced. If possible, the remaining commitments should perhaps be replaced by the bank that provides the police officer loan. Ultimately, the rates and the term could be lower. Incidentally, if a civil servant has a negative reputation, his high credit rating is downgraded and the status of official no longer appears in the right light at the banks.