Application for writing off interest on the loan

In conditions of economic instability, especially during martial law, many citizens encounter financial difficulties that make it difficult to repay loans on time. An application for the write-off of interest on a loan becomes a relevant tool for those who find themselves in difficult life circumstances. This may include job loss, reduced income or other force majeure circumstances affecting the ability to meet financial obligations to creditors. In this article, we will consider in detail how to make a statement correctly, which documents are necessary for this, and which legal regulations should be paid attention to.

Grounds for writing off interest on the loan

The legislation of Ukraine provides for several grounds on the basis of which the borrower can demand write-off of interest on the loan, and one of the main ones is the effect of martial law. During this period, borrowers have the right to apply to creditors for the write-off of accrued interest, penalties or fines. In accordance with Article 625 of the Civil Code of Ukraine, a debtor who has overdue a monetary obligation must pay the amount of the debt at the request of the creditor, taking into account the inflation index and 3% per annum of the overdue amount. However, during martial law, these requirements may not be applied if the fulfillment of the obligation has become impossible due to force majeure. This is stated in Clause 18 of the “Final and Transitional Provisions” of the Civil Code of Ukraine: during the period of martial law and within thirty days after its termination, borrowers are released from responsibility for late payment of monetary obligations, and all accrued fines and penalties are subject to mandatory write-off .

In addition, military personnel can count on the termination of the accrual of interest on the loan in accordance with special conditions. You can find out more about this in the article “Stopping the accrual of interest on loans to military personnel”, which explains the rights of military personnel in this situation.

For those who are looking for legal ways to solve credit obligations, the article “Writing off credit debt in a legal way” may also be useful, where the possibilities and mechanisms of debt write-off in the legal field are considered.

How to correctly make an application for writing off interest on a loan

The application for write-off of interest on the loan must be made as specifically as possible and contain all the necessary details that explain the reasons for the request. It is important to indicate the exact amount of the debt, accrued interest and references to the relevant legislative acts that give grounds for the write-off. For example, in case of delay in loan payment due to martial law, it is necessary to refer to the Law of Ukraine No. 2120-IX.

Here is an example of the structure of such a statement:

• Statement cap:

1. Addressing the application to the head of the financial institution.
2. Personal data of the borrower: full name, residential address, contact information.

• The main part of the statement:

1. Description of the situation: date of conclusion of the credit agreement, terms of the loan, amount owed.
2. Reference to legal regulations: articles of the law justifying the request for write-off of interest.
3. Specific claim: write-off of accrued interest, penalties or fines.

• Additional documents:

1. A copy of the passport and RNOCPP.
2. Evidence of financial difficulties (work certificate, copy of dismissal decision, etc.).

• Date and signature.

In order to increase the chances of a successful resolution of the issue, it is recommended to send the application by registered mail with a description of the attachment and a notice of delivery.

Legal justification for write-off of interest on the loan

The main normative legal act, which regulates the issue of writing off interest during martial law, is the Law of Ukraine No. 2120-IX. According to this law, fines and penalties accrued from February 24, 2022 are subject to write-off if the borrower is unable to meet obligations due to hostilities. The Civil Code of Ukraine also provides for the possibility of exemption from liability for delay, if it occurred due to unavoidable circumstances, such as martial law.

Additionally, the issue of writing off loan debts can be regulated by separate agreements between the bank and the borrower. For example, a bank can voluntarily write off a part of the debt or all accrued interest to avoid lengthy legal proceedings and loss of reputation.

For a more detailed consideration of situations when debt cancellation is possible, you can read the material “Loan / microloan debt cancellation”.

Application submission and further actions

After drawing up an application for write-off of interest on the loan, it should be sent to the financial institution by registered mail. Be sure to keep all receipts and copies of the application, because these documents may be needed for further legal actions, including filing a complaint with the National Bank of Ukraine or going to court.

If you need help in drawing up an application or advice on the debt write-off procedure, we recommend that you contact specialists in this field. Their advice can significantly increase the chances of a successful resolution of the issue.