Loans for mobilized personnel: what benefits apply to mortgages and consumer loans

During martial law, the issue of credit obligations for mobilized military personnel remains one of the most pressing. Men and women are being drafted into the army, but their financial obligations—mortgages, consumer loans, credit cards—are not going away. Ukrainian law provides for a number of benefits, but they have clear limits.

Key guarantees for military personnel are enshrined in paragraph 15 of Article 14 of the Law of Ukraine “On Social and Legal Protection of Military Personnel and Members of Their Families,” as well as in the Law of Ukraine “On Consumer Lending.”

Interest and penalties: what they are not allowed to charge

For military personnel mobilized during a state of emergency, as well as for their husbands or wives, the following are not charged:

• interest on loans;
• penalties and fines for late payments.

This benefit is valid from the moment of conscription until the end of the special period. If the bank continues to charge interest, it is obliged to write it off after confirming the military status.

Exception: the benefit does not apply to loans taken out to purchase housing (mortgage, property rights to an apartment or house) and a car. Interest may be charged under such agreements, unless otherwise provided by the terms and conditions or the state program.

Principal debt: you will have to pay

The law does not exempt military personnel from paying the principal amount of the loan and bank fees. At the same time, the borrower has the right to:

• apply to the bank for debt restructuring;
• agree on a credit holiday — a temporary deferral of payments on the principal amount of the loan.

Restructuring and credit holidays are granted only with the consent of the bank.

During the period of martial law and for three months after its end, banks and collection agencies are required to adhere to stricter rules of ethical conduct. They are not allowed to contact on their own initiative:

• military personnel;
• families of those killed or missing in action;
• persons who are in captivity or with whom contact has been lost.

To take advantage of this protection, you must notify the creditor in writing and provide supporting documents.

How to take advantage of benefits

Lawyers at Strategic Advocacy advise:

• Officially notify the bank of your mobilization.
• Provide a copy of your military ID or a certificate from your military unit.
• Request a reconciliation of the debt.
• Submit an application for the write-off of interest and penalties and the granting of a credit holiday.
• In case of refusal, file a complaint or go to court.

Court practice already confirms the right of military personnel to be exempt from interest and penalties.

Mobilization does not cancel the loan, but it significantly reduces financial pressure. Military personnel are only required to pay the principal debt, and interest and penalties should not be charged for the period of service. The main thing is to declare your status in a timely manner and document it.