The basic requirement for successfully completing a loan is the receipt of a regular income. When it comes to a loan for soldiers, the banks are usually very accommodating, because professional and regular soldiers are welcome customers. Due to their professional activity and the associated regular income, hardly any difficulties are to be expected when repaying the loan. Many banks encounter this fact with particularly attractive conditions for a loan for soldiers. However, there are certain differences between lending to a professional soldier and a temporary soldier:
Loans for professional soldiers
Professional soldiers have regular income for life. Due to this fact, they are given the status of an official at a bank or are equated to this status. As a result, the professional soldiers are given particularly favorable conditions when granting a loan and they receive a so-called “civil servant loan”. The amount of the desired loan depends on the monthly income, but is a maximum of approximately twenty times the net income.
Loans for temporary soldiers
In the case of a loan for soldiers who only work in this profession for a limited period, the granting of a loan is subject to certain conditions. For example, the applicant must provide a confirmation that the service period can be proven. Another criterion for a positive loan is that the soldier must have worked as such for six months. Depending on how long the contract of the time soldier runs or will continue to run, the amount of the monthly deduction for the loan is based. The applicant should definitely be able to repay the loan in full within the scope of his contract period as a soldier.
The banks are also fully aware that the loan for soldiers is associated with certain risks, such as a sudden death of the borrower, which can unfortunately occur when deployed in crisis areas. In such a case, the so-called “residual debt insurance” comes into force, through which the soldier can secure himself when taking out the loan. As a result, his relatives are secured and cannot be bothered with having to continue paying off the debts, because the residual debt insurance does this.