As mentioned, the Civil Service Loan is a loan that is available if you are a civil servant or semi-civil servant. As a civil servant you work for the government (or state) and you are in a position to take out loans that may be cheaper than other loans. As a civil servant, you offer the bank or lender some kind of security or certainty in paying back the loan. Because you as an employee work for the state over government, you enjoy a certain advantage because working for the government is seen as a kind of privilege.
Information about the Civil Service Loan
Recent research has shown that more than 60% of civil servants taking out a loan have fewer problems paying back the loan. This research shows that civil servants have a better payment mentality. This makes you as a civil servant a safe investment for a bank or lender. Because the bank does not have to take any special arrangements for you as a civil servant, they can offer you a more affordable loan.
Civil servants are often a lot more secure about their jobs than the rest of the Netherlands. It is also said that a job with the government is a job for life. Whether you work for cleaning or performing a top position for the government, a job with the state or government is always seen as “safe”. It is therefore that a bank or lender is willing to charge a lower interest rate for a government loan than the other loans.
The civil servant’s loan is not so much a separate form of borrowing money
It is a fairly new form of borrowing that focuses more on a specific target group than on a borrowing form.
If you want to borrow money as a civil servant, it is advisable to first obtain information from your employer. Employers are often prepared to grant a mutual loan to their employees and to make an arrangement for this in the form of
a monthly deduction from the salary. If your employer is not willing to agree on such a scheme, it might be beneficial to look at a government loan.
Advantages and disadvantages of the Civil Service Loan
- Lower interest due to the security that the government offers as your employer.
- Lower interest rates because officials have more reliable and better reimbursement mentality
- Not suitable for everyone, only civil servants, semi-civil servants or an official’s partner are eligible for a civil servant loan.
- If you are no longer a (semi-) civil servant, other conditions may apply in the form of a higher interest rate.