Write-off of interest on a loan to the military in Ukraine

Military servicemen, conscripts and reservists in Ukraine are entitled to special benefits regarding their credit obligations during martial law.

Legal basis of benefits

According to Part 15 of Article 14 of the Law of Ukraine “On Social and Legal Protection of Servicemen and Members of Their Families”, these categories of servicemen are exempted from paying interest charged by banks for using loans for the period of military service in the conditions of a special period.

This exemption is a unique privilege for defenders of Ukraine, as it is granted exclusively to military personnel. It allows them to save their money in the conditions of war and to focus on the execution of combat tasks.

Conditions for granting benefits

The specific conditions for granting benefits depend on the status of a military serviceman. For contract and mobilized employees, benefits are valid from February 24, 2022 until the end of the special period. For reservists and conscripts – from the moment of their enlistment during mobilization. In general, such benefits are an important component of financial support for Ukrainian defenders and their families.

How to get a benefit

In order to take advantage of the exemption from paying interest on loans, military personnel must submit supporting documents to the bank.

First of all, this is a military card, where there are marks about the completion of service. It is also possible to submit a certificate of a participant in hostilities, a certificate from a military unit about service under a contract, or an order or certificate on the enrollment of a reservist in the ranks of the Armed Forces. There is also a special certificate about participation in measures of national security and defense of the country.

After receiving such documents, the bank is obliged to transfer the balance of the loan without taking into account the illegally accrued interest for the period of military service. This will allow the military to significantly reduce its debt on loans. Therefore, it is extremely important to provide the bank with confirmation in order to take advantage of the accrued interest write-off.

Return of previously paid interest

It is important to note that military personnel have the right not only to be exempted from paying interest on loans for the future, but also to the return of previously paid interest in the status of a military personnel.

Therefore, careful familiarization with their rights will allow servicemen not only to stop further payment of prohibited payments, but also to return already paid funds.

The importance of exercising the right to benefits

Benefits regarding the write-off of interest on loans for military personnel are established by law in order to provide financial support to the defenders of Ukraine. However, in practice, many military personnel do not exercise their right to such benefits.

The reasons can be different: ignorance, reluctance to contact the bank one more time, conviction that this money is better spent on other needs. However, it must be understood that without receiving the appropriate benefits, the military actually voluntarily helps banks and financial institutions to earn additional profits.

After all, such organizations are, for the most part, commercial structures for which the financial result is important. So if a serviceman does not insist on his legal benefits, he simply donates part of his funds to a bank or finance company.

It is better to use this money for personal or family needs. Protecting your rights will allow you to direct the saved funds to where they will bring more benefit to Ukraine. You should not be ashamed of this – because the benefits are deserved by law.

Professional support when writing off interest

Do not stay alone in difficult situations. If you, as a member of the military, have difficulty paying interest on a loan or need legal assistance, do not hesitate to contact us. The team of lawyers of the company “Prykhodko and partners” is ready to provide you with qualified legal advice and full support.

We will help solve your problems, justify your rights and protect your interests in all aspects of the case. Do not hesitate to contact us – we are always ready to help you.