Write-off of loans and interest on loans to female military personnel

Interest Relief on Loans for Wives and Husbands of Servicemembers

Interest relief on loans for wives and husbands of servicemembers is a commonly used name for a special credit benefit provided by Ukrainian legislation.

Legally, it is more accurate to speak not about complete cancellation of the loan, but about non-accrual of interest for the use of credit, penalties, and fines for categories of servicemembers and their wives or husbands defined by law.

The loan principal, as a rule, remains the borrower’s obligation.

The benefit does not mean automatic cancellation of the loan. It is necessary to determine separately who is eligible, from what date the benefit applies, and which specific charges the creditor must exclude.

Who Is Entitled to Non-Accrual of Interest

Paragraph 15 of Article 14 of the Law of Ukraine “On Social and Legal Protection of Servicemembers and Members of Their Families” provides the benefit, in particular, for:

• servicemembers called up for military service during mobilization for a special period;
• servicemembers called up from among reservists during a special period;
• their wives or husbands;
• certain other servicemembers who participated or are participating in the defense of the independence, sovereignty, and territorial integrity of Ukraine, as well as their wives or husbands.

For such persons, subject to the applicable conditions, the following are not accrued:

• interest for the use of credit;
• penalties;
• fines for failure to perform obligations.

From What Date Does the Benefit Apply to Spouses of Servicemembers?

This is one of the most important points.

The amendments that expressly extended the benefit to wives and husbands of servicemembers entered into force on May 18, 2024.

Therefore, in current court practice in 2025–2026, courts separately analyze:

• the date the credit agreement was concluded;
• the period for which interest was accrued;
• the date on which the person acquired the status of a servicemember’s wife or husband;
• the category of military service;
• the date on which eligibility for the benefit arose.

In a number of decisions, courts proceed from the position that, for wives and husbands of servicemembers, the benefit applies specifically from May 18, 2024, and not to interest accrued before that date.

What Can Be Written Off or Recalculated

Depending on the loan and the period of accrual, this may concern:

• interest for the use of credit;
• penalties;
• fines;
• other penalty charges falling within the scope of the relevant legal provision.

At the same time, the principal amount of funds received — the loan principal — is not written off solely on the basis of this provision of the Law.

Therefore, before contacting the bank or MFO, the lawyer separates the debt into:

• loan principal;
• interest;
• commissions;
• penalties;
• fines;
• other payments.

Which Loans Are Not Covered by the Benefit

The law provides for exceptions.

The benefit concerning non-accrual of interest does not apply, in particular, to certain credit agreements for the purchase of:

• a residential house;
• an apartment;
• a future real estate property;
• an unfinished residential construction project;
• property rights to such assets;
• a vehicle.

The current version also contains a separate exception for loans used to purchase and install certain energy equipment if the interest may be repaid or compensated by a third party or the state.

Does the Benefit Apply to MFO Loans?

Yes, the issue may concern not only bank loans.

The legal provision covers obligations to enterprises, institutions, and organizations of different forms of ownership, as well as individuals.

Therefore, depending on the specific circumstances, it may also be necessary to analyze:

• MFO microloans;
• credit lines;
• credit cards;
• consumer loans;
• other relevant credit obligations.

At the same time, the agreement itself, the creditor, and the structure of charges must be reviewed separately.

Does the Date of the Credit Agreement Matter?

Yes.

For example, a loan may have been issued in 2022 or 2023, while interest continued to accrue after May 18, 2024.

In such a situation, the lawyer reviews the periods separately:

Courts in 2025–2026 are already applying this period-based approach.

What Documents Are Needed for Interest Relief

Depending on the circumstances, the following may be required:

• the credit agreement;
• a detailed debt calculation;
• a marriage certificate;
• documents confirming military service;
• a certificate from the military unit;
• a military ID or other supporting document;
• documents confirming the category and period of service;
• statements concerning payments made;
• correspondence with the bank or MFO.

How to Submit an Application to a Bank or MFO

The first practical step is usually a written application to the creditor.

The application should:

1. specify the details of the credit agreement;
2. confirm the status of the servicemember’s wife or husband;
3. describe the legal basis under paragraph 15 of Article 14 of the Law;
4. identify the period for which the charges should be reviewed;
5. request termination of further accrual of interest, penalties, and fines within the applicable benefit period;
6. request a recalculation;
7. request an updated debt calculation.

It is important to obtain confirmation that the application was submitted.

Is the Relief Applied Automatically?

In practice, you should not assume that the bank or MFO will automatically become aware of the military status of the borrower’s spouse and conduct a recalculation on its own.

It is advisable to notify the creditor in writing and provide supporting documents.

If the creditor has already accrued interest, the lawyer may demand that it be:

• recalculated;
• excluded from the current debt;
• excluded from the amount claimed for recovery to the extent covered by the benefit.

What to Do If the Bank Refuses to Recalculate

The reasons for refusal should be analyzed.

For example:

• the bank believes that the servicemember does not belong to the relevant category;
• documents are missing;
• the loan falls within a statutory exception;
• the dispute concerns the period before May 18, 2024;
• the creditor interprets the legal provision incorrectly;
• there is a dispute concerning the calculation itself.

Depending on the result, it may be possible to:

• submit an additional application;
• prepare a formal legal claim;
• apply to the regulator — if the creditor is a financial institution;
• protect the right in court.

What to Do If the Bank or MFO Has Already Filed a Lawsuit

In this situation, the court case requires a separate response.

The lawyer reviews:

• the loan principal;
• the period during which interest was accrued;
• fines and penalties;
• the date on which eligibility for the benefit arose;
• military service documents;
• marital status;
• statutory exceptions.

After that, the statement of defense may raise the issue of the unjustified recovery of interest and penalties for the period during which the relevant benefit applied.

In 2026, there are already court decisions in which interest accrued to the wife of a servicemember after the relevant amendments entered into force was assessed specifically under paragraph 15 of Article 14 of the Law.

Does the Benefit Apply Only During Martial Law?

The old wording on the page referring to “90 days after the end of martial law” should not be used as a universal rule.

Paragraph 15 of Article 14 links the benefit to specific categories of servicemembers and periods defined by the Law itself — including the period of call-up or the special period, depending on the category.

Therefore, the duration of the benefit must be determined individually based on:

• the type of military service;
• the date of call-up;
• the period of service;
• participation in the relevant activities;
• the status of the wife or husband.

Does the Benefit Apply to Contract Servicemembers?

The old statement that all contract servicemembers are automatically excluded from the benefit is too broad.

The current provision covers not only mobilized servicemembers and reservists, but also another category of servicemembers who, during the special period, directly participated or are participating in activities defined by law for the defense of Ukraine, as well as their wives or husbands.

Therefore, it is necessary to review not only the form of military service, but also the specific statutory category.

How a Lawyer Can Help

Legal assistance may include:

• analysis of the credit agreement;
• verification of the servicemember’s status;
• determination of the benefit period;
• recalculation of interest, fines, and penalties;
• preparation of an application to the bank or MFO;
• pre-trial claims work;
• a complaint to the NBU — where there are appropriate grounds;
• preparation of a statement of defense against the creditor’s claim;
• court representation;
• protection in enforcement proceedings if the debt is already being recovered compulsorily.

Stages of Cooperation

1. Document analysis. We review the credit agreement and the servicemember’s documents.
2. Determination of eligibility. We establish the relevant category and period.
3. Debt recalculation. We identify interest, penalties, and fines that may be excluded.
4. Application to the creditor. We prepare the application and supporting documents.
5. Review of the response. We check the recalculation performed by the bank or MFO.
6. Challenge. In the event of refusal, we determine the regulatory or judicial remedy.
7. Court protection. If the creditor has already claimed the disputed amount for recovery.

Common Situations

Conclusion

The benefit for wives and husbands of servicemembers is not a complete cancellation of the loan. Its purpose is the non-accrual of interest, fines, and penalties in cases provided by law. To apply it correctly, it is necessary to determine the servicemember’s category, the applicable benefit period, the type of loan, and separate the principal debt from charges that the creditor was not entitled to impose.

Are you the wife or husband of a servicemember, but a bank or MFO continues to charge interest and penalties? Submit a request on the Prikhodko & Partners Law Firm website. A lawyer will check your eligibility for the benefit, recalculate the debt, and help ensure the proper application of statutory guarantees.