Law on write-off of interest on loans to military personnel

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Law on write-off of interest on loans to military personnel

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During the war in Ukraine, the issue of financial relief for military personnel defending the country becomes extremely urgent. When Ukrainian military personnel risk their lives and health defending our country, they may face financial difficulties related to the need to repay loans. Therefore, the issue of easing their debt burden by writing off interest on loans is extremely relevant today.

 

Legislation of norms for military personnel regarding credit obligations

The current normative legal acts of Ukraine determine special preferences for defenders of the state regarding the fulfillment of credit obligations during martial law. In accordance with the Law "On Social and Legal Protection of Servicemen and Members of Their Families", the following benefits are provided for persons mobilized for military service:

  • Temporary exemption from paying the interest rate for the use of credit funds.
  • Exemption from paying fines for late loan payments.

It should be emphasized that these preferences do not cancel the obligation of the military to repay the principal amount of the loan. The specified legal norms apply to all conscripts for military service in a special period during the entire period of martial law, and for reservists and conscripts - from the moment of conscription until the end of hostilities.

In order to exercise the right to benefits from credit obligations, a serviceman must provide a credit institution with documentary evidence of his status in accordance with the established procedure.

Return of interest on loans to the military

Important moment! All funds paid by the serviceman in the form of interest, fines and penalties for using the loan are subject to mandatory return.

Participants in hostilities and those mobilized after February 24, 2022, who have valid credit agreements, can take advantage of legal benefits. In particular, they have the right to demand the return of interest payments made since the beginning of the full-scale war.

Military personnel who have faithfully serviced their loans have the right to compensation for interest accrued by the bank after February 24, 2022. This is important support from the state during the war.

 

Exceptions for contractors

There are exceptions for contract servicemen. In the case of their application for the return of interest, the decision is made by the bank at its own discretion. That is, the bank can refuse the contractor to write off interest for the war period.

Important nuances of applying loan benefits for military personnel

The benefits do not apply to loans obtained for the purchase of housing stock real estate (houses, apartments, etc.) or cars.

What to do to achieve the desired result?

In order to protect your rights as a military serviceman regarding the benefits due to you, from the preparation of the necessary package of documents and, if necessary, to contest wrongful refusals, contact qualified lawyers.

Specialists of the company "Prykhodko and partners" have considerable experience in solving similar issues. They will carefully study all the materials of your case, provide comprehensive advice on the procedure for restoring violated rights and help defend your legitimate interests before the creditor in court or pre-trial proceedings.

The involvement of professional lawyers will ensure the competent preparation of the necessary documents, the correct argumentation of your position and the most effective settlement of the issue of granting you benefits as a participant in hostilities.

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