According to legislation, military personnel are provided with certain benefits, guarantees, and compensations. These concessions also apply to lending. Below in the article, we will discuss what benefits are available to military personnel and what has changed or may change in 2023.
Current Lending Concessions
According to this Ministry of Justice, from the beginning and until the end of the special period for military personnel, and for reservists and those liable for military service – from the moment of conscription during mobilization until the end of the special period, the following benefits are available:
- exemption from paying interest on the use of credit;
- exemption from paying fines/penalties for late payments on loans to enterprises, institutions, and organizations of all ownership forms, including banks, and individuals (part fifteen of Article 14 of the Law of Ukraine “On Social and Legal Protection of Military Personnel and Their Families”).
Credit holidays are a period during which the debtor can stop repaying the loan without negative consequences for their credit history. Usually, this period can last from three to six months and applies to all types of credit products – both cash loans and online credit to a card.
Professional military personnel and contract soldiers do not accrue interest on loans from March 18, 2014, to today. All borrowers with the status of military personnel can take advantage of credit holidays.
For clients mobilized into the ranks of the Ukrainian army, National Guard, or regional defense battalions, credit holidays are valid for the period of mobilization and military service.
In 2020, amendments were made to the Law “On Social and Legal Protection of Military Personnel and Their Families,” regulating certain restrictions:
- The benefits do not extend to family members of military personnel, those liable for military service, and reservists who died during military service (gatherings), service in reserve due to committing criminal or administrative offenses, or if the death of a military personnel, liable for military service, or reservist occurred as a result of actions committed under the influence of alcohol, drugs, or toxins, or if it was a deliberate injury inflicted by the military personnel, liable for military service, or reservist;
- This law does not apply to foreigners and stateless persons serving in the Armed Forces of Ukraine.
Preliminary data suggests that no new legislative changes are planned for 2023. However, we recommend clarifying information with the credit institution you plan to contact for a loan, as each financial institution may offer certain benefits individually.
