In order to bridge a financial bottleneck – for whatever reason – it may be helpful to draw on a loan. However, the approval of a loan by the banks is subject to certain conditions. In this context, it is primarily necessary that the applicant has reached the age of 18 and also has sufficient creditworthiness.
It is also important that a permanent, if possible permanent employment relationship can be proven. Officials usually have a much easier time getting a loan in this regard. Because their professional status is in a way a guarantee for a permanent and stable employment relationship. For the banks or the lending institutions, this means: security for the timely repayment of the installments.
Security is very important
A loan for teachers is therefore linked to numerous advantages for the applicant. The loan amount is not repaid here in the form of regular installments, as is the case with “classic” loans. In the case of a loan for teachers, the repayment is made through a life insurance. This is often linked to a service or occupational disability insurance, so that the highest level of security is guaranteed – both for the borrower and for the lending institution. The borrower’s family members also benefit from the teacher loan. The family is nevertheless fully covered by the life insurance.
Inexpensive and highly flexible
Furthermore, the loan for teachers offers many other amenities. So the customer is only obliged to pay the accrued interest and insurance premiums. Small amounts and a high degree of flexibility are guaranteed over a long period. The loan amount is repaid simply and easily through the expiry payment of the life insurance included in the contract. But not only that: At the end of the term of the loan agreement, the bonus shares can even be distributed. This can also be individually planned and defined within the framework of the loan agreement. Even the terms can be selected flexibly: Depending on the provider, there is an optional fixed interest rate between 12, 15 or 20 years.
Cost efficiency, flexibility and attractiveness – these are the essential factors that make a loan so popular for teachers.