The Ministry of Defense of Ukraine has provided clarification regarding the provision of credit holidays for defenders and their families. In particular, it has been determined who is entitled to take advantage of this benefit, which types of loans it does not apply to, and what documents need to be submitted for its registration.
This is reported by Finway
Conditions for Receiving Credit Benefits for Military Personnel
Military personnel, mobilized citizens, and reservists who are on active duty have the right to avoid paying interest and penalties on loans for the entire period of military service. The “credit holiday” takes effect from the first day of conscription or participation in combat operations and also extends to the spouses of military personnel.
“Banks and financial institutions are not entitled to charge penalties, fines, or interest on loans during the period of service of a military serviceman or his/her spouse.”
However, this provision does not apply to loans taken for the purchase of housing, vehicles, or specific energy equipment (such as photovoltaic modules, wind power installations with hybrid inverters) if interest compensation is already provided for such loans by the state or third parties.
The benefit applies regardless of where the service is conducted – on the front lines or in the rear. For mobilized individuals and reservists, credit holidays are effective from the first day of conscription until the moment of discharge from military service. For contract servicemen and other categories of military personnel, the right to benefits arises only if they directly participate in combat operations or defense activities. If a contract serviceman has only served in the rear and has not performed combat tasks, he/she cannot take advantage of credit holidays. The benefit also does not extend to foreigners and stateless persons serving in the Armed Forces of Ukraine.
These provisions are enshrined in the Law of Ukraine “On Social and Legal Protection of Military Personnel and Their Families” (paragraph 15 of Article 14).
What Documents Are Needed to Apply for Credit Holidays
To apply for the benefit, the serviceman or his/her spouse must submit a package of documents to the bank.
For mobilized individuals and reservists, the following documents are required:
- military ID or officer’s certificate;
- certificate in form 5 (confirmation of service);
- extract from the order of appointment (if the type of service is not specified in the form 5 certificate);
- marriage certificate (if the benefit is being applied for by the spouse).
For contract servicemen and other categories of military personnel, the following additional documents are required:
- military ID or officer’s certificate;
- certificate in form 5;
- extract from the order of appointment;
- marriage certificate (for the spouse);
- document confirming participation in combat operations or defense activities. This can be:
- certificate in form 12 (on participation in combat operations);
- or certificates from appendices 1, 4, or 6 to Order No. 413 (for obtaining the status of a combat participant).
All listed documents are prepared and issued by the unit where the service is conducted. After submitting this package, the bank is obliged to cease the accrual of interest and penalties on the loan for the duration of military service.
