In exceptional cases, the Armed force grants a soldier a loan. It must be noted here that a loan from the Armed force is always the condition that the soldier fulfills certain requirements in order to receive the loan. The Armed force loan can then be used for your own home, for bills or for a vacation trip. The loan amount that is granted for a loan from the Armed force is around 2,500 euros. The limit is only exceeded in very rare cases.
Loan for soldiers – favorable conditions
Even though the loan amount for a loan for soldiers is very limited, it still helps many soldiers to make important purchases. The loan is offered with favorable terms. How high the rates are depends on the salary that is available. Soldiers who have been or are deployed abroad earn a lot more, so that more money is available. The interest rates for a loan from the Armed force are not very high and can be compared to those of the bank.
Professional soldiers enjoy a special status
If a professional soldier wants to take out a loan, he can ask the Armed force whether he will get it. But if the sum is too small for him and needs more money, he should go to the bank. Professional soldiers are placed on the same level as civil servants. In this way, professional soldiers also receive the same conditions and can borrow a much higher amount than with a loan from the Armed force. So the applicant should consider how much money he needs so that he can then decide whether he would prefer to take out the loan with the bank or with the Armed force.
The term of a bank loan can be 20 years, so that even at a young age you can think about building a house without having to pay a lot of interest. Depending on the intended use, both variants are suitable, so that everyone has to decide for themselves which provider they will contact. There is another advantage at the bank. The soldier can take out life insurance if he opts for a loan. If something happens abroad, the family can be insured with the insurance.