What should soldiers know about loans? What is important for loans for soldiers? What should soldiers pay attention to in particular? We try to answer all these questions in the following article.
Whether it is a short-term purchase, such as a vacation, a new car or new furniture, or whether you want to replace other contracts favorably by using a loan for soldiers , or if you rely on borrowing for the purchase of a home, the creditworthiness is central factor in the calculation and evaluation of financing.
In principle, credit institutions always assess a risk of failure of funding, favoring certain occupational groups with relative safety in their own workplace.
Are there special loans for soldiers?
Soldiers have a civil servant – similar status and this has a positive effect on the assessment of a loan request. Because of your job, you have a monthly income that will likely increase over a longer period of time.
Banks offer different loan models for these time and professional soldiers, tailored to different careers.
An additional advantage of having a loan for soldiers is that they often have little or no expenses for accommodation, travel or meals due to special allowances, at least when compared to a worker’s conventional expenses.
Accordingly, the banks, of course, have the opportunity to take into account these lower monthly charges and to hold special credit for soldiers offers.
Are there differences in credit for soldiers?
As with any loan, bids vary from bank to bank. In general, it should therefore be checked carefully before a financial statement, which credit sum is exactly needed, which monthly expenses are possible and how, above all, the own financial requirements.
These relate not only to the monthly rate, but of course above all to your own career.
Of course, it makes a difference for banks whether the rate is secured by a time-soldier over 8 years or a professional soldier almost life-long.
Banks prefer to offer credit contracts that are strictly tied to their own service. Financing for your own housing construction is already more difficult, as this is usually not affordable through short or medium term contracts.
Here, the saver but the increase in the pay, which is also adjusted for longer service hours due to the promotions, take into account.
With a degree relatively close to his own end of service, the bank will surely expect proof of employment after the soldiers’ career.
For conscripts there are usually no special loan offers, since the term would simply be too short, that is, the secure income for the calculation is not enough.
Credit from the Armed forces of Germany
The Armed forces of Germany also offers a loan for soldiers specifically for its employees. This is an interest-free and earmarked loan, which is granted as an advance.
However, the amount of the special loan is limited to a maximum of 2,500 euros . In addition, the use of the loan is reviewed and must be proven by supporting evidence.
Some uses of the Armed forces of Germany loan:
|Establishment of a first site apartment||Soldiers wedding|
|Paying for damage to household contents (such as after a fire or flood) that is not covered by the insurance||In human tragedies (serious illness or death of a relative)|
Interest-free loan by the Armed forces of Germany
As a soldier one is regarded as a civil servant and as such is subject to special protection. This also applies in the event that you become seriously ill or even incapacitated.
These are very good conditions for comprehensive loan security.
Civil servant loans are thus among the cheapest loan offers ever.
This also applies to the provider Armed forces of Germany, which holds loans for its “employees” at special rates. If one is ready to accept the above-mentioned restrictions, one can thus profit from various advantages.
However, it should be mentioned that time guards only get access to these favorable conditions as long as their service time is running. Lifetime professional soldiers, in turn, can benefit for an unlimited period of time.