Soldiers always have a special status with banks because they get their salary from the state. They also earn extra money when used abroad. This means that their salary is very high and the job is safe. Depending on their rank and career, they have considerable income that comes close to an official. Therefore, it is often the case that this group of people receives the conditions of an official loan when it comes to soldiers’ loans.
High financial scope for soldiers
Because soldiers have a high salary and enough security, they can also take out a large loan. It is possible to finance a house, buy a new vehicle or pay for a trip with the loan. Thanks to the good credit rating, the soldier can find offers for loans to soldiers at almost every bank. The conditions are very attractive and the bank’s loan decision is not long in coming. The monthly expenses for the loan hardly burden the budget, so that even higher sums hardly get any attention. Long-term credit is guaranteed, so that the term can often be almost 20 years. Anyone who is soon pursuing a different profession as a soldier should submit the new employment contract so that a loan can be approved.
What should be considered?
There is no longer any compulsory military service and soldiers can leave the Bundeswehr at any time. It is therefore only of advantage for the bank if the soldier has been working for several months or years. This is the only way the bank can be sure that the applicant will not change jobs immediately and thus lose his good prerequisites. Banks take great care to keep the default risk as low as possible. The applicant should carefully consider in advance how much money he needs. If, for example, he is under-priced when building a house and needs another loan, it can be difficult to apply for another sum.
Comparing saves money
If you compare the offers of soldier loans as a soldier, you can save a lot of money. Banks all have different offers, so the interest rates can also be very different. With small sums, this is hardly noticeable, but if you want to raise a higher amount, you should pay particular attention to the effective annual interest rate. This includes all costs, including the processing fee. If you compare loans with each other, you have a clear advantage and protect your own wallet. In the end, several hundreds or even thousands of USD can be saved, which are spent unnecessarily.