Even if the employee has a special status, with a stable job and a regular salary, he too may have subscribed to too many credits. In this case, it is just as exposed to financial difficulties as other employees, with a risk of debt that is too important. This can even go as far as being recorded on the personal loan repayment impact file, when it can no longer pay its debts when due. The official credit redemption allows all credits in repayment to be grouped into a new single loan. The new monthly payment put in place can be optimized in relation to the repayment capacity of the employee.
Who is this financial transaction for?
France is the country in Europe with the largest number of civil servants, they are not less than 5.64 million. These public servants are divided into three different statuses into three categories which are state officials (ministries, companies and public bodies, reinforcing), local government officials and hospital officials. The former depend on the central administration or a deconcentrated service such as the rectorate for teachers. The second are employed by the region, the department or the commune, as for the third they are employed by a public institution of care or hospitalization.
When a credit buyback operation is put in place, the employee’s status does not affect it. Whether it is a matter of consolidating consumer loans, a home loan or both, the nature of the financing package does not change. The loan consolidation process is open to all public servants, regardless of their heritage status, that is to say, tenant, hosted free of charge, tenant of a company housing or owner. It should be noted that assimilated civil servants may also benefit from the conditions put in place by financial institutions for civil servants. They are indeed considered as such, and as such will benefit from the specific credit terms set by certain companies. Obviously for any filing of file, a preliminary analysis of feasibility will be scrupulously studied by the specialized analysts.
The benefits of the official credit redemption
The official credit redemption is a method of consolidating all previous loans. It even allows in parallel to finance a new project, through obtaining an additional amount of money that will be grafted to the remaining balance of all credits combined. A new depreciation schedule will be implemented with a single monthly payment and a longer duration, so that it is lightened. The management and the balance of the monthly budget are thus facilitated, especially since there will be only one interlocutor.
The security and stability of the civil servant’s employment gives him a special status in society, but also with credit institutions. Indeed, they present a positive image and a lower risk than other categories of employees thanks to their secure use. As a result, credit institutions are quick to offer tailored offers for a stabilization of personal finances to bring them comfort in the long run.
In a grouping of credits for public servants, one of the most important advantages is the guarantee, when there is a real estate project. When the civil servant has joined a professional insurance company, it can act as a surety for banks. This is an important element in the credit process, because it avoids the mortgage of real estate in the event of a payment incident. It is therefore this organization that bears the guarantee costs.
The subscription to the professional mutual insurance also has its importance in the insurance of the repurchase of credits, because it is still it which makes it possible to benefit from a privileged rate of insurance when there is repurchase of mortgage. This is set at 0.23% of the initial capital, against around 1% for other employees. Lastly, the borrowing State agent may, when he is entitled, retain his rights to the APL (Personalized Housing Assistance).
The principle of repurchasing official credits
The operation of the credit pool is the same as for the other socio-professional categories and takes place in the same way. Therefore, all categories of consumer credit (auto loan, motorcycle, work, personal, renewable, credit subscribed online, etc.), but also real estate can be sold, in a partial or total. To these types of credit are also added accumulated debts such as bank overdrafts, unpaid debts, tax arrears, etc.
Thanks to the purchase of credits, the possibility is given to the official to renegotiate the terms of his new loan, but also to review his debt ratio. In parallel he may consider financing a new project, even if it is a real estate project, depending on the borrowing capacity. The interest rate may be set up in a fixed or variable manner. As for other employees, the purchase of unsecured credits is granted to public servants for a period of up to 12 years. When there is a mortgage guarantee (in case of mortgage loan), the duration can be up to 25 years.
When the repurchase agreement is signed, the employee has 14 days of retraction like any other borrower. Once this time has passed, the credit institution is responsible for paying the sums due to all creditors, whether banks, credit companies, but also tax centers or other bodies where debts have been contracted. The repaid capital is thus carried over to the new credit subscribed with a new monthly payment and repayment term. These will have been carefully established during the assembly of the file, taking into account the needs of the official but also his remains to live.
The nature of the redemption of credits is also based on the share of outstanding property outstanding. If, for example, a government borrower has subscribed to a home loan, and the amount remaining to be repaid represents more than 60% of the total capital remaining due from all the credits redeemed (consumer credit and home loan), the new borrower borrowing will be considered a mortgage and will depend on its legislation. For less than 60%, the grouping will be part of the consumer credit category. The borrowing rate of the repurchase of official credits is identical to that which is practiced in the market, without particular distinction related to the professional statute.
All kinds of solutions can be offered to the grievor who has encountered financial difficulties. A simple feasibility study already makes it possible at the outset to determine what will be the best solution for the current situation of the borrowing civil servant. Online simulators are perfect, free, non-engaging and highly effective tools. The studies are generally done by experts in profiles of officials and in all confidentiality. Tailor-made solutions are proposed to give a breath of fresh air and regain financial serenity.