How to write off interest on a loan from a bank or MFI

The debtor's fulfillment of his credit obligations to the creditor has always been a relevant topic in Ukrainian society. This is due to the fact that issuing loans to citizens has always been popular in Ukraine, because in this way a person could purchase a product and start using it today, and pay the money over a certain period of time. In practice, it turns out to be quite a convenient situation for buying any product. However, when a citizen takes out a loan, he cannot always calculate whether he will have the opportunity to repay the debt in the future, which, as a result, leads to an increase in the amount of the loan and additional interest charges for the use of loan funds. And therefore, in this article, we will consider how to write off interest on a loan in a bank or MFI in Ukraine during martial law?

How is interest paid for using a loan?

As a general rule, a financial institution or MFI has 2 levers of influence on citizens so that the latter pay interest on the loan. The first of them is a voluntary procedure, which involves direct communication with the debtor in order to explain to the latter what consequences await him for possible non-payment of the loan. The second is a coercive procedure, which implies that if a person does not come into contact with a financial institution or an MFI and does not want to pay the loan or interest on it, then the bank will go to court to collect the funds.

How can interest on a loan be written off today?

If you have one of the following situations, the bank can charge you interest for using the loan, namely:

• if the citizen has an illness that makes it impossible for him to fully perform his work function (at the same time, it will be necessary to provide relevant corroborating evidence of this);
• due to force majeure or force majeure - these can be various natural disasters (tornadoes, floods or earthquakes) or war, for example;
• if the citizen lost his working capacity at the enterprise in the event of an accident;
• if the citizen does not have a sufficient amount of property with the help of which it is possible to repay the body of the loan, the interest on it, as well as other penalties (if they are available, of course);
• if the statute of limitations for the loan has expired - 3 years in accordance with the CCU.

It is worth remembering that a financial institution can charge you interest for using a loan only if you have the relevant evidence "on hand" confirming the above-mentioned circumstances. In addition, a bank or an MFI can write off the debt for interest for the use of credit both partially and in full. That is, guided by the relevant circumstances of your case and at your own discretion.

Is it profitable for the bank to go to court to write off interest on the loan?

Of course, for a financial institution, the best option for solving the situation regarding overdue debt will be a dialogue between the debtor. Because in this case, it will not be necessary to spend additional money on paying the court fee and hiring a staff of lawyers for this. Therefore, if a financial institution has charged you a debt that you are unable to pay at the moment, the best option would be to contact the bank and report the occurrence of such life circumstances.

If you have received a loan from a bank or MFI and you have accrued an overdue interest debt for the use of such funds, then in this case you will need advice from experienced lawyers - the "Prykhodko and Partners" law firm.

Our team specializes in solving such issues, as we have the appropriate experience and qualifications for this. In addition, our lawyers will always advise you on the best ways to resolve the situation that happened to you. So don't delay and apply!