The civil servant credit is a loan intended for employees of the public service, as well as those performing a public service mission.
Different categories are accessible: on the one hand, the repurchase of civil servant real estate loan with mortgage, on the other hand the repurchase of civil servant real estate credit (guaranteed RAC), then the repurchase of consumer credit for civil servant GDP and finally the repurchase of civil servant credit with amicable transfer on salary (including withholding tax).
Principle of civil servant credit
Civil servants have regular but lower incomes than the rest of the population: they therefore use the loan more to finance their projects. Their credit is therefore favored by the French State on the one hand, but also by the banks, which set up special conditions to facilitate the process.
Thus, the ACEF (Association for Credit and Savings of Civil Servants) was set up to encourage the borrowing of its members. It puts at your disposal, if you are civil servants and member of the association, all the documentation to enlighten you on the steps to follow.
To give you an example of the conditions favoring public servants, they can be, if they meet certain borrowing conditions, exempt from mortgage fees. These advantages compensate for the ordinarily lower incomes of civil servants, but which are in regular and “secure” compensation: civil servants are in fact less threatened by the loss of their jobs.
Conditions for obtaining an official loan
The civil servant loan is subject to the only condition of being an agent of the government or working in the public service. No means test is necessary.
Civil servants representing a category of borrowers who are not very risky for banks and credit institutions, these are pampered by the latter. In addition to state aid, the banks have introduced their special range of government loans that are particularly advantageous for this asset class. There are three types, flexible depending on the bank or credit institution:
- Reduced-rate government loans
- Government loans without insurance
- Staff loans without means test
Official loans can also be of several types, and cover all kinds of investment: they can thus take the form of a home loan, a consumer loan, a car loan, and any kind of possible loan.
Principle of the repurchase of official credit
The repurchase of official credit works like for the other credits, except that the official credit profits from a higher “scoring”, ie that it is better noted by its banker and can thus claim better rate.
If your official credit repurchase is carried out in the same credit institution or the same bank, we also speak of “credit renegotiation”, manipulation allowing you to benefit from a better rate depending on the conjuncture by debating with your banker.
Advantages and disadvantages
Thanks to the official loan buy-back, you can negotiate your loan at the best rate! So, if you become a civil servant after having borrowed, do not hesitate to assert your new function with your banker, he could make you a more profitable rate! In addition, you will be able to compete with banks and credit institutions, giving you the opportunity to choose again the loan that suits you.
The drawbacks are mainly in the paperwork which will have to be filled out again. You will also have to pay the prepayment penalties: study your new loan by including this data!