Banks and credit institutions prefer to grant professional soldiers loans on favorable terms due to their secure employment and fixed income. Professional soldiers are on permanent service in the army. They are recruited from tried and tested time soldiers. In the status of a professional soldier, the person is appointed and thus receives an official-like status.
The income of a professional soldier, also known as remuneration, is based on the federal salary regulations. Professional soldiers can not quit, but can quit their service, which, however, requires the consent of the employer. The employment relationship generally lasts until retirement, which has reached the age of 62 since 2007. In special circumstances, the professional soldier can enter early retirement, which is graded according to rank, from the age of 55. Because of this low risk, banks grant loans to professional soldiers on special and favorable terms.
Prerequisite for a civil servant loan for professional soldiers:
Approval to receive a professional soldier loan is proof that the soldier has been accepted as a professional soldier. With the status that is equivalent to civil servant status, professional soldiers can take out a civil servant loan, installment loan or credit without Credit Bureau.
Ideal forms of credit for professional soldiers:
The ideal loan for professional soldiers is the civil servant loan. The civil servant loan includes special benefits. Due to low credit rates, free use and long terms, civil servant loans are particularly suitable for debt rescheduling, all purchases and real estate financing. This form of credit is a repayment-free loan in combination with a life insurance or pension insurance. The “final” loan is not repaid in installments, but at the end of the term through the payment of the insurance.
The monthly rate is a combination of the interest due and the life insurance contribution. If there are surpluses from the insurance, these can be paid out or offset against the loan, which reduces the credit rate. As a rule, the term for this loan for professional soldiers is between 12 and 20 years. The official loan contains a guaranteed fixed interest rate that does not change over the entire term and is normally lower than the usual interest rate of other forms of credit. Refinancing is suitable for existing loans with higher interest rates. This credit for professional soldiers requires a positive Credit Bureau. The amount of the loan depends on the amount of the remuneration and the maximum rates of the lender.
For the approval of the official – credit for professional soldiers, both the mutual consent of the bank and the insurance company is necessary. Another form of loan for professional soldiers is the Credit Bureau-free civil servant loan. In the case of negative Credit Bureau entries, this Swiss installment loan is also taken out without being linked to life or pension insurance. The purpose of this loan is also free, but the maximum loan amount is between 3500 and 4000 USD. In contrast to civil servant loans, a classic installment loan is paid off by monthly installments consisting of interest and repayment. The Credit Bureau-free loan is a foreign loan in which Credit Bureau entries are not to be shown and which is not reported to Credit Bureau either. The loan without Credit Bureau is a maximum of 3500 USD and is repaid at a fixed rate over a term of 40 months.
Collateral and dangers of civil servant loan for professional soldiers:
The bank secures itself through a “silent assignment of salary” or through life insurance. In the event of the professional soldier’s death, the family is covered by the civil servant credit model. Special repayments have an advantageous effect on the loan contract. It should be noted that the civil servant loan for professional soldiers can be up to 20 times higher than the monthly net income and thus threatens to overindebtedness.