The armed forces is not only an employer for many people, it also grants loans to their relatives in certain exceptional cases, but these are tied to a specific purpose. armed forces employees, such as temporary soldiers, can also take out a loan from the armed forces under certain circumstances.
The armed forces promises low-interest loans, but only if, for example, the apartment is furnished or married. A loan from the armed forces is limited to a maximum of 2500 dollars, so it is not always suitable for financing. For example, if you want to finance a car or buy a consumer item, you have “bad cards” with the armed forces, but armed forces soldiers also have the option of borrowing from a bank.
Alternative to the loan from the armed forces – Bank loan for armed forces soldiers
Depending on their rank and profession, armed forces soldiers may even be able to apply for a loan for civil servants. A civil servant loan offers numerous advantages over a loan for “normal workers”, such as low interest rates and more flexible loan options.
armed forces soldiers should, however, proceed with caution when determining the term, because if you want to secure a low interest rate, you should not exceed the term of the service if possible. For example, if you are committed to the armed forces for four years, you can easily take out a three-year loan, but because temporary soldiers can be “released” after this time, they may have to face temporary unemployment.
Credit from the armed forces not possible – secure a loan from a bank with attractive terms
So that armed forces soldiers can secure a loan from a bank with attractive terms, they should not do without a loan comparison. When comparing several offers, particular attention should be paid to the interest conditions. In general, a distinction must always be made between debit and effective interest, whereby the debit interest for loan comparison or the total loan costs is of little importance. The effective interest rate, on the other hand, provides the borrower with a very good basis for comparison, since in addition to the bank’s borrowing rate and fees, it also takes into account the requirements of the armed forces soldier.
In addition to the term and loan amount, the borrower’s creditworthiness is also taken into account in the effective interest rate. The creditworthiness of the borrower is measured today primarily on the basis of income and Credit Bureau. Since armed forces soldiers have a secure job and a high regular income, they can enjoy particularly attractive interest rates, especially when a positive Credit Bureau information confirms the impression of positive payment behavior.
In order for the armed forces to be able to access a bank loan as an alternative to the loan at the best conditions, borrowers should use a loan calculator comparison on the Internet, this is free of charge and can lead to significant cost savings in the long term.