A recent analysis indicates a significant disparity in lending terms between civil servants and private sector employees. The study, conducted by the comparison portal Verivox, reveals that public sector employees consistently receive more favorable loan offers than their counterparts in private employment.
On average, civil servants accessing credit through Verivox paid 5.68 percent interest on installment loans over the last twelve months, compared to 6.59 percent for private sector employees. This translates to a 14 percent reduction in interest costs for civil servants and a potential savings of €529 on a standard €22,000 loan with a five-year term.
The figures also indicate a higher rate of loan approval for civil servants. Verivox reports an 80 percent approval rate for loan applications from public sector employees, compared to 52 percent for those in private employment.
Verivox attributes the discrepancy to the security associated with civil service employment. Oliver Maier, Managing Director of Verivox Finanzvergleich, explained that civil servants are considered highly secure credit risks due to their job security and, often, higher-than-average incomes.
The study further reveals that civil servants borrow larger sums of money on average – €22,322 compared to the overall average of €17,121 – representing a 23 percent difference. This is linked to a higher net income reported among civil servants in the study, averaging approximately €1,300 more than that of private sector employees, despite potential differences in healthcare contributions.
The data analyzed encompasses all installment loans completed through Verivox between August 2024 and July 2025.
