Credit for civil servants.
Non-civil servants in federal and state authorities as well as in municipal administrations count as employees in the public service. Employees of other public law institutions such as the state broadcasters and the employees of the large religious communities are predominantly regarded as employees in the public service. With good Credit Bureau, a loan for employees in the public service can be obtained on favorable terms.
Official loans for civil servants
Public employers pay lower salaries than many private companies, but to compensate, the job is considered to be extremely safe. There is hardly any reason to fear an employment-related dismissal in an employment relationship in the public service, since even when an office is given up, there are usually possibilities to transfer it to another position. For this reason, most providers of special official loans also grant the discounted loan to employees in the public service.
As a rule, a minimum period of service of three to five years is required. The advantages of an official loan include not only the low interest rates, but also the maturities of more than ten years that most financial institutions can offer. Since numerous financial institutions offer official loans, it is advisable to compare prices before the loan application by the public employee.
Borrowing with restricted creditworthiness
While civil servants can easily take out a cheap civil servant loan with a permanent employment contract, the temporary employment contract, which is also increasingly used by public law employers, makes it more difficult to take out a loan. The limitation of the term of employment contracts to a period of two years does not apply if it is based on an objective reason. Such a principle exists when hiring young researchers at the university, so that the corresponding employment contracts are often limited to three or five years.
With a temporary employment contract, even the loan for employees in the public service is difficult to obtain if the repayment is not made within the current time limit. Since the settlement of the remuneration does not indicate the term of an employment contract, borrowing is usually successful if the lender only requests proof of income, but not a copy of the employment contract. The borrower remains responsible for being able to repay the loan even if the employment relationship is not extended.
Public sector employees have forfeited a Credit Bureau negative entry less frequently than employees of private companies. Even if there is one and it is a single soft negative feature, various banks approve a loan for civil servants. Thanks to the fixed income, it is also possible to apply for a loan through a Swiss financial institution, but the federal banks do not grant any discount to civil servants or civil servants, but only increase the age limit for this group of people.
Lending by the employer and installment financing
An employer loan, as a loan for public sector employees, is subject to significantly more conditions than with private companies. While the business agreements of most commercial companies provide for employer credit without specifying the purpose, loans from the public service are only available for a few purposes.
Although these differ slightly between the individual authorities, they are usually limited to moving loans and wedding loans. Installment loans are available as dedicated loans through a dealer for public sector employees as well as for employees of private companies. Some companies even offer special rates to civil servants and public employees.