Credit Holidays for Military Personnel: Who Can Be Exempt from Paying Interest and Penalties on Loans

Military personnel, mobilized individuals, and reservists can take advantage of so-called credit holidays—a benefit that provides exemption from paying interest, penalties, and fines on loans during the period of service. This right also extends to the wives and husbands of defenders. This was reminded by the Rivne Regional Territorial Center for Recruitment and Social Support.

During the service period, banks and other financial institutions are not allowed to charge interest on loans to these categories of citizens, nor apply penalties or fines.

At the same time, the benefit does not apply to loans taken out for the purchase of housing, including unfinished construction projects, vehicles, or certain energy equipment—such as photovoltaic modules and wind power installations with hybrid inverters—if the interest on such loans is already compensated by the state or third parties.

The right to credit holidays depends on the type of military service. For mobilized personnel and reservists, the benefit starts from the first day of conscription and lasts until discharge from service. The place of service does not matter—the rule applies both to those at the front and those performing duties in the rear.

For contract servicemen and other categories of military personnel, the right to the benefit is linked to direct participation in the defense of the state during the Anti-Terrorist Operation (ATO), Joint Forces Operation (JFO), or repelling full-scale aggression after February 24, 2022. If a serviceman has participated in combat or defense activities for at least one day, he gains the right to write off interest and penalties. The benefit starts from the first day of such participation and continues throughout the entire subsequent period of service under special conditions.

If a contract serviceman has served entirely in the rear and was not involved in combat tasks or defense activities, he cannot use this benefit. Also, the rule does not apply to foreigners and stateless persons serving in the Armed Forces of Ukraine.

This right is provided for in paragraph 15 of Article 14 of the Law of Ukraine "On Social and Legal Protection of Servicemen and Their Families."

To stop the accrual of interest, the serviceman or his wife or husband must submit the appropriate set of documents to the bank.

For mobilized personnel and reservists, the required documents are:

• military ID or officer's certificate;
• certificate in the form No. 5 confirming service;
• extract from the appointment order if the type of service is not indicated in the certificate;
• marriage certificate if the benefit is applied for by the serviceman's wife or husband.

For contract servicemen and other categories, the following must be submitted:

• military ID or officer's certificate;
• certificate in the form No. 5;
• extract from the appointment order;
• marriage certificate for the wife or husband.

Additionally, a document confirming participation in combat or defense activities is required. This can be:

• certificate in the form No. 12 confirming participation in combat;
• or certificates issued according to appendices 1, 4, or 6 to Procedure No. 413, which are used to obtain the status of a combatant.

All the mentioned documents are issued by the military unit at the place of service.

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