A recent analysis by the comparison portal Verivox reveals a significant disparity in lending terms between public sector employees and those in private employment. The study, reported by the Funke Media Group’s Saturday editions, indicates that civil servants consistently benefit from more favorable loan conditions.
On average, public sector employees securing financing through Verivox paid 14 percent less in interest on installment loans compared to privately employed individuals. The portal’s data shows civil servants averaged 5.68 percent interest, while private sector employees paid 6.59 percent. This translates to a potential savings of €529 on a standard loan of €22,000 with a five-year term.
Verivox also noted a considerable difference in loan approval rates. Civil servants received financing offers on 80 percent of their applications, significantly higher than the 52 percent rate for private sector employees.
The advantageous terms are attributed to the unique employment status of civil servants. Oliver Maier, Managing Director of Verivox Finanzvergleich, explained that these employees are perceived as highly secure loan applicants due to their job security and often above-average incomes.
The study further highlights that civil servants also tend to borrow larger amounts. The average net income for civil servants in the Verivox analysis was nearly €1,300 higher than for those in private employment. Consequently, they secured average loans of €22,322, compared to the overall average of €17,121 – a difference of 23 percent. Researchers accounted for the fact that civil servants pay a portion of their income towards health insurance, but still observe this trend.
The analysis is based on all installment loans completed through Verivox between August 2024 and July 2025.