Some banks and specialized institutions offer a personal loan on advantageous terms. However, it is subject to the same regulations as other personal loans.
The socio-occupational status of an official and similar staff is an attractive guarantee for banks and credit institutions. A personal loan for a public servant may therefore sometimes benefit from more flexible grant conditions or a preferential interest rate.
Public Service employees can obtain a personal loan from certain banks and specialized institutions in partnership and certain insurance companies.
Subject to the same regulations as all other personal loans, these specific credits are very similar to those offered to non-civil servants by all banks and credit institutions. No bank can indeed derogate from the legislation.
Current credit regulations do not differentiate between the different socio-professional status of borrowers.
The duration of a personal loan officer is pre-determined and can not be reviewed. Only an early repayment can change the duration. Thus the officials can also be offered:
- An unallocated personal loan : the borrower has no obligation to justify his proposed purchase. He is free to use the sum borrowed as he pleases;
- An affected personal loan : this type of credit involves the production of a proof of purchase or project financed by this fixed rate loan. In this case, the sum lent by the bank can only be used for the project previously identified. It can be a kitchen, a car or a trip for example.
Benefits and peculiarities of the personal loan staff
While respecting the legislation in force, some banks give some advantages to the civil servants wishing to obtain a specific personal loan. For example, they may impose less burdensome borrowing conditions or make a personal loan without a means test.
In many cases, the official is exempted from handling fees.
It is interesting to inquire before subscribing as preferential conditions can be granted:
- Public Service employees wishing to take out a personal loan;
- Retired public servants;
- To the spouse and / or children of a public servant;
- To officials under the age of 35;
- To the so-called “assimilated” persons, that is to say not having the status of civil servant but working for example, Air France or even at EDF, companies under the monopoly of State.
The interest rate of the official staff credit
While the interest rates on a personal loan were much lower than those on loans to other borrowers, today there is a more moderate difference. Be that as it may, it is still possible to be offered a personal loan at a preferential rate. But some credit companies offer interest rates lower than those charged by institutions specializing in loans reserved for civil servants.
It is in the interest of a public service employee to compare borrowing rates across all lending institutions before incurring personal credit.