A mystical aura precedes a loan from the armed forces. Many consumers are of the opinion that there is no loan from the armed forces. However, these consumers are wrong, because the armed forces does make a loan available to its soldiers. It is a special credit for soldiers, but it has some requirements and restrictions. Therefore, the soldier should find out about details before applying for a loan.
The armed forces loan – the situation
Anyone interested in a loan from their armed forces employer will be somewhat disappointed. The loan is earmarked for no interest, but still interesting. Generally, this loan cannot be compared to a classic bank loan. You can actually see the armed forces loan as an advance. The loan amount is limited to a maximum of 2,500 USD. The loan is often used to set up an apartment at the stationing location. Others want to get married and use the loan to do so.
The social aspect of this loan should be mentioned, because the loan from the armed forces is also approved if a person close to the soldier has a serious illness, and the loan should then be considered a supportive measure. Even if damage is caused by fire or the like and the insurance does not cover the damage, the soldier can count on the help of the armed forces.
With a dedicated loan, many consumers don’t tell the truth and disguise that they want to buy something completely different with the loan. However, this should not happen with a loan from the armed forces, because a superior can always appear unannounced at home to look at the purchase that the soldier has bought from the loan. In addition, the purchase must be documented with the financing of the loan.
The loan from the bank
If you are a soldier interested in a loan from a conventional bank, you will find that the bank sees this benevolently. The soldier as a civil servant is viewed by banks like any other public servant or civil servant. However, the soldier does not receive the remuneration, such as an official. A soldier does not normally have to expect a salary increase because there are strictly tightened salary tables, which are used to orient the pay.
However, unlike employees on the free market, the soldier is under special protection. Officials, including soldiers, are practically non-resignable as soon as they hold the certificate of appointment “for life”. The risk of unemployment is thus gone. If a close relative of a soldier falls seriously ill during his service, the state supports him comprehensively. The soldier thus provides a certain level of credit security solely through his professional status, so that no other security is provided.
In general, a soldier can assume that he will receive a loan with particularly favorable terms. All banks and financial service providers advertise this professional group and provide special credit. Anyone who thinks that the armed forces loan is the cheapest is wrong. In many cases it is always worth checking other banks with a loan comparison. Experience has shown, however, that it rarely happens that a loan from the free financial market is cheaper than a loan from the armed forces.
Loans provided by banks do not have to be earmarked. The loan amount is also not limited to 2,500 USD. Larger loan amounts can also be approved. However, it must be noted that the soldier will only receive these discounted loans as long as the soldier is with the armed forces. Many banks then limit the term of the loans to the length of their employment.
Anyone who has committed as a time soldier for four years will only be offered a cheap loan by banks if the loan is paid within this time. If a large loan amount has to be taken out with a long term, things look different. If the soldier goes into permanent employment after his time in the armed forces, the armed forces will approve the loan. However, only if the soldier’s creditworthiness is correct. When the loan is taken out at the end of the service, the bank will request an employment contract for the period thereafter. There are no special loan offers for normal military service providers, since this term would then be too short.
As a professional soldier, of course, all cheap civil servants’ loans are available to him. If the soldier has an impeccable Credit Bureau, he can get a loan with a term of 20 years. Most of the time, the loan agreement is concluded with life insurance. Within the term of the loan, the borrower pays the interest on the loan and at the same time the premiums for life insurance.
The amount saved will be used to repay the loan later. Surplus surpluses are credited to the soldier.
The soldier also benefits from a flexible loan term, and the rates can either be lowered or suspended. The customer is advised when deciding on a civil service loan to replace other existing liabilities and incorporate them into the new loan.
A soldier should also make a loan comparison. He will find cheap loan offers with this comparison and can look at the different interest rates that banks provide for a soldier or an official.
The bad Credit Bureau
A soldier’s credit rating must be good, otherwise he will not receive a loan from the armed forces. Even if the professional status offers him cheap loans, the bank will also check the Credit Bureau with him. If negative entries are noted, a soldier will also not receive a loan from a bank. The negative Credit Bureau then offers him a loan from the armed forces in the amount of 2,500 USD if the intended use fits.
The soldier with bad Credit Bureau receives a little more financial resources from foreign banks. Above all by a Lite bank that specializes in clients with poor credit rating, in most cases 3,500 USD and 5,000 USD are approved. The soldier has the prerequisites for a permanent and secure job. A simple private corporation receives gross 1,954.30 USD per month. A sergeant-in-chief has a gross salary of 3,192.03 USD. With regard to these salaries, a Credit Bureau-free loan is likely to come about.