Official loans compared – How to compare correctly

There are occupational groups that are particularly valued by banks. These include civil servants. They benefit from their almost permanent employment because they are civil servants for life. But their regular income from the state also makes them coveted customers. This is particularly noticeable when granting loans, because civil servants benefit from lower interest rates and longer terms.

There are differences in official loans

There are differences in official loans

A comparison of official loans clearly shows that the offers of the individual banks differ significantly. This applies not only to the amount of interest, but also to the remaining conditions. Officials get this advantage because the risk of default is extremely low, because if they are not to blame, they cannot be terminated.

Public employees also benefit from these advantages. When granting loans, they get the same benefits as their civil servants.

The purpose, conditions, special repayments and much more worth knowing

The purpose, conditions, special repayments and much more worth knowing

Some banks require the use of a government loan. Others, however, do not. Some government loans are even earmarked. But online banks generally don’t ask for it. However, with so many offers, it is not easy to find the right loan for civil servants straight away. It is therefore important to compare official loans against one another. The differences emerge here, which also brings a financial advantage. It is also important for decision-making whether the respective bank offers its customers a free special repayment right, because many require money for early loan repayment.

The handling of the banks is also different as far as the term is concerned. With longer terms, the rate can be reduced, which is an advantage for an official in training because of the lower salary. Official loans in comparison can be found on the Internet. The loan seeker receives all relevant information at a glance and can in most cases apply for the official loan directly from the bank online.

Applying for loans through capital lender is easy. An online loan application is sufficient to address both banks and private investors at a serious level. Of course, the borrower decides who gets the loan.

Lightning credits for the self-employed

Most providers only give lightning loans to employed borrowers and not to the self-employed. However, taking out a quick loan for this group of people is not entirely out of the question. One reason for the hesitant lending of lightning to self-employed and freelancers is that this group of people can partly provide information about their own income according to their own assessments and can also easily gloss over it.

What is a lightning credit?

What is a lightning credit?

In the case of a lightning credit, the money applied for is paid out within two bank working days. The prerequisite is that the borrower submits his completed loan application by the time specified by the bank and has the Postident procedure carried out at any post office. If the loan is granted by a bank registered in Luxembourg, the processing period can be shortened to one banking day, since in this case the fax copy of the ID card is sufficient as proof of identity for normal loan amounts.

The quick payout of a lightning loan is associated with higher interest rates compared to loans with longer processing times. Credit customers willingly pay an appropriately high interest premium for quick processing, but this must not be too high.

How do self-employed get a lightning credit?

How do self-employed get a lightning credit?

The rapid processing of a lightning credit means that the information in the loan application cannot be checked. Consequently, many lenders refrain from submitting proof of earnings for lightning loans, so that the self-employed in the loan application state their average income without reference to their employment relationship. With this procedure, applications for lightning credits for the self-employed are regularly approved, however the applicant violates his obligation to provide correct information in the loan application.

This procedure becomes problematic if the subsequent loan repayment does not take place as agreed and the lender carries out a subsequent check of the lending. In this case, he may immediately reclaim the loan paid out under false pretenses. If repayment is correct, the incorrect information in the loan application is also illegal, even if the bank is unlikely to perceive the incorrectly completed order as such.

The better solution

The better solution

The honest and at the same time better solution is to search intensively for the self-employed. A few lenders explicitly accept self-employed and freelancers as credit customers, so that they can take out a lightning loan from them.

In addition to processing the loan via the Internet, which is common for fast loans, lightning loans for the self-employed can also be applied for in a bank branch. In their statutes, regionally oriented Volks- and Raiffeisen banks and savings banks have expressly committed themselves to promoting the local economy, including the self-employed and freelancers. Lightning credits for the self-employed are mainly available online for entrepreneurs who have been self-employed for at least three years.