Write-off of accrued interest during martial law on loans for military personnel

What is a loan?

A loan is a financial transaction in which the creditor (bank or other financial institution) lends money to the borrower for a specified period and with interest. The borrower receives the required amount immediately, and then gradually repays it in installments according to the payment schedule. The main conditions of lending (amount, term, interest rate, repayment procedure, fines, etc.) are determined by the credit agreement between the creditor and the borrower. The granting of a loan enables the borrower to receive the necessary funds immediately, but implies his obligation to repay the debt in a timely manner and to pay interest for the use of the loan.

Who can get a loan?

Credit can be obtained by:

• Individuals who have reached the age of majority (18 years old) have a permanent job or other source of income. For different types of loans, additional requirements regarding age, credit history, etc. may be imposed.
• Legal entities registered in accordance with the legislation are enterprises, organizations, institutions that carry out economic activity.
• Natural persons-entrepreneurs who conduct business activities and are registered as business entities.
• Military personnel – on the condition of providing a certificate of income, other documents required by the bank to assess creditworthiness.
• Foreigners and stateless persons who legally reside in Ukraine and can prove their ability to pay.

The final decision on granting a specific type of loan is made by the bank based on an assessment of the borrower’s creditworthiness and solvency.

Support of military personnel in conditions of martial law

In this difficult time, special attention and support are needed by military personnel who, starting from 24.02.2022, stood up for the protection of the Motherland.

Guided by the Law of Ukraine “On social and legal protection of military personnel and their family members”, the state provides certain benefits to military personnel in order to support them and ease their financial situation.

In particular, participants in the anti-terrorist operation and military personnel mobilized after the start of a full-scale war have the right to return the amount of interest they paid on the loan from February 24, 2022.

At the same time, it is worth paying attention to the fact that it is possible to return only those interests that were actually paid already in the status of a mobilized serviceman, that is, after receiving a summons and enlisting in a military unit, or the person must have the status of a participant in an anti-terrorist operation.

For a successful refund, it is extremely important to strictly adhere to the requirements regarding the period of actual interest payment under martial law conditions.

Such a step makes it possible to partially ease the credit burden on defenders of Ukraine in an extremely difficult period.

Peculiarities of return of interest paid by military personnel

Participants of the anti-terrorist operation and mobilized military personnel, after the start of a full-scale invasion of Ukraine, who have valid credit agreements, have the opportunity to take advantage of benefits in accordance with the law.

According to this, military personnel who faithfully paid both the principal amount of the debt and the accrued interest on the loan have the right to return the interest that was accrued and paid by them from February 24, 2022.

Military personnel who conscientiously service the loan have a legal right to return the interest accrued by the bank for the period starting from February 24, 2022. This is one of the important elements of state support for the military in a difficult time for Ukraine.

Importantly! Military servicemen undergoing military service under a contract can rely only on the decision of the financial institution when applying to the bank with a demand to return the paid interest.

In such a case, the bank independently determines whether to grant benefits to the military regarding the write-off of interest on the loan for the period of martial law.

Successful practice of the company

The legal company “Prykhodko and partners” actively helps military personnel in matters of returning the interest paid on loans during the period of martial law.

The relevant legislation was studied in detail and a number of appeals were prepared to banking institutions regarding the return of accrued interest for the use of loans to the mobilized defenders of Ukraine.

Thanks to professional legal knowledge and hard work, it was possible to achieve positive results in many cases. The company’s specialists managed to return thousands of hryvnias of accrued interest to the military, who applied for legal assistance.

Thus, the coordinated work of lawyers and lawyers makes it possible to effectively protect the rights of military personnel and partially ease their financial situation in today’s conditions.

Legal assistance

If you have any questions regarding the return of interest paid on loans during martial law, contact the Prykhodko and Partners law firm.

Our specialists will help you understand the intricacies of legislation, prepare the necessary documents, and provide legal support in cooperation with banks. We will take care of solving all questions and difficulties on the way to returning your funds.

Do not hesitate to contact us for legal assistance. Our team of professionals is always there to protect your interests. Together we will overcome all difficulties and achieve the desired result!