The repurchase of credit for the civil servants allows the agents of the State which took out loans reserved for the civil servants to consolidate all their debts in only one monthly payment. The repurchase or consolidation of credit simplifies budget management, while reducing the amount of monthly payments.
The official loan, a loan reserved for public officials
The civil servant credit is a real estate banking product reserved for agents of the state, territorial or hospital civil service. It is specifically designed to allow civil servants, who do not benefit from the 1% employer loan, to finance the purchase of their main residence, whether new or old, with or without work. Civil servant credit has several advantages:
- the deposit can be paid by the employee’s mutual health insurance;
- the amount of insurance is cheaper than with a conventional loan;
- it allows the borrower to keep his rights to Personalized Housing Assistance (APL), if he has one.
The borrowing rate for official credit, on the other hand, is identical to or even slightly higher than that of the market. However, it is capped at 7%. To benefit from it, the borrower must first have a Social Action Loan (PAS), or an approved loan. He can then apply for an official loan, the only body authorized to distribute this product. The various professional mutuals in the public service are responsible for the guarantee and credit insurance for the borrower. To alleviate his monthly payments, a civil servant can make a request for repurchase of official credit with the banks.
Simplify the management of its loans thanks to the repurchase of official credit
The repurchase of credit is a simple and advantageous financing operation. It optimizes the management of its budget, to preserve its purchasing power or avoid the risk of over-indebtedness. To get the most out of it, you need to have at least three loans, such as:
- the mortgage;
- a car loan;
- consumer credit.
The operating mode of a civil service loan buy-back is the same as for any other socio-professional category. This financing operation, which can be carried out by banks or credit institutions, is based on a simple principle. Rather than having multiple withdrawals, at various maturities on your account, a credit repurchase makes it possible to group all the debts contracted in a single monthly payment. This is particularly advantageous when it comes to revolving consumer loans, which have very high interest rates and are very difficult to get rid of.
By grouping all the loans under a single single rate comparable to that of the market, with only one insurance, and by lengthening the duration of its receivable, the repurchase of credit can make it possible to reduce the amount of its monthly repayments by more than 50%.
Please note: variable withdrawal period
This period is 10 or 15 calendar days depending on whether the loan buy-back offers are of the real estate or consumer type. However, if a home loan is grouped with several consumer loans and the home loan represents less than 60% of the redemption, a period of 15 days will be applied.
Official loan buyback file: our advice
A loan consolidation dossier is carefully prepared, and ideally upstream of the request. This saves precious time and demonstrates its seriousness with banks. When setting up his official loan buy-back, the borrower should not neglect anything and include all the supporting documents commonly requested, such as:
- a copy of his ID;
- proof of address;
- his latest account statements;
- his last tax notice;
- the offers of consumer loans and current mortgage loans, with their amortization schedules.
A loan repurchase file must be solid. In the event of bad management of the bank account or of an unstable professional situation, the banks will tend to refuse to buy back the credits.
Good to know: comparators and simulation tools, two allies!
Before submitting your application to the banks, it is important to carry out a feasibility study using online simulation tools. Comparators, just like the simulation tools, will allow us to compare offers and find the best rate. The borrower will also get an estimate of his future monthly payments according to the repayment duration chosen. Ideal for having an overview of its future loan grouping!
If necessary, the borrower can be helped by a broker to build his file. This professional will also compare for him the offers to group together the banks with which he is a partner. But beware, a percentage will be applied to the amount of the buyout in the event of the signing of an offer (1 to 5% on average, depending on whether it is a grouping of real estate or consumer credit). This is how the broker gets paid.