Military personnel who went to serve are entitled to certain credit benefits. After all, mobilization can catch those who have outstanding loans by surprise. Fortunately, Ukrainian legislation provides some benefits for military personnel. So if you have been mobilized, do not rush to worry – there are ways to resolve the issue with the banks.
The Law “On Social and Legal Protection of Servicemen and Members of Their Families” has important provisions for those who went to serve. In particular, the following are not counted as mobilized:
- Interest for using the loan
- Penalties and penalties for late payments
But these benefits apply only to consumer and cash loans. They do not apply to loans for housing or cars, if contracts are concluded after August 19, 2022. However, the military still has to pay the principal amount of the loan and the fee.
What to do with a loan during mobilization
If you or your relatives cannot pay the loan on time due to mobilization, ask the creditor for debt restructuring or credit holidays. Interest, penalty and interest exemption benefits apply to all banks and non-bank financial institutions.
The bank may not know that you have been mobilized and will continue to charge interest and penalties. To avoid this, submit the following documents to the bank:
- A copy of a military ticket or an extract from the order of enlistment in a military unit
- Application for exemption from payment of interest, penalties and fines, as well as request for debt recalculation
After that, the bank will provide a certificate on the balance of the debt on a certain date. If you are having difficulty repaying the loan, try to negotiate a debt restructuring or credit holiday by providing documents confirming your difficult financial situation.
If the bank does not fulfill its obligations, contact its manager with a complaint. If this does not help, write an appeal to the National Bank, which must check and eliminate the violation. The last option is to go to court.
