Employee Credit Comparison (2020)

Employee Credit Comparison (2020)

Workers and employees – differences in the definition of terms

Workers and employees - differences in the definition of terms

The terms employee and employee are differentiated primarily by the working level and the type of performance. The salary for employees and wages for employees are also typical. While employees are still, as in the past, still associated with manual and industrial professions, employees stand for administrative and highly spiritually oriented professions, and senior and managerial positions are also held by employees. Collective bargaining and social law also distinguish between these two terms.

The bottom line for the bank that issues a loan is whether the borrower is of legal age and creditworthy and has a secure employment with regular income. Exceptions are loans for employees in the public sector or civil servants who are characterized by special conditions such as a lower interest rate, large amounts of credit, long terms and the link to a life insurance policy.

The “normal” loan

The "normal" loan

Anyone who is in dependent, permanent employment as an employee or employee, has a good, average or high income, has reached the age of 18 and can show creditworthiness, has a large selection of different offers on the credit market. Direct banks and branch banks offer the loan for employees as overdraft, installment loan or on-demand loan and thus serve different needs. In addition, the credit card is also of great importance as a charge or revolving card because it can be used worldwide. Charge cards offer the customer a term of payment, while revolving cards equal the credit line.

Special feature: loans for employees in the public service

Special feature: loans for employees in the public service

Civil servants and civil servants are not identical in terms of status, but banks value both customer groups very much as credit customers, because security in terms of employment and respectable income offer the best conditions for lending. Among the offers are numerous loans specifically for employees and employees in the public service, which are referred to as civil servant loans. The high creditworthiness of civil servants and civil servants also defines the special conditions for this loan, because interest rates are often lower for this reason.

In addition, there is the classic civil servant loan, which is also sometimes offered to employees in the public service. The term of such a loan can be up to 20 years. At the same time, capital life insurance is taken out. Instead of a monthly installment repayment to the credit account, payments are made into life insurance.

Interest rate dependent on creditworthiness

Interest rate dependent on creditworthiness

As with all borrowers, the credit rating usually determines the amount of the interest rate. A loan for employees with poor credit ratings is also excluded here. Therefore, the credit check for employees is also given. In the case of executives, civil servants or academics in particular, a good credit rating is almost a prerequisite, which suggests that a loan for employees without private credit bureau is possible. However, this is only partially so, because even if there is no query or entry at private credit bureau, the creditworthiness can be checked via other banks and credit protection companies.