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Credit holidays for defenders: eligibility for interest and penalty waivers

Service members, mobilized personnel, and reservists may refrain from paying interest and penalties on loans for the duration of their service. These so-called “credit holidays” take effect from the first day of mobilization or participation in combat operations and also apply to the spouses of defenders.

The Ministry of Defence explains who is eligible for this benefit, which loans it does not apply to, and the documents required to obtain it. 

Overview of the benefit

For the duration of their service, many defenders and their spouses are exempt from paying interest and penalties on loans. This means that banks and financial institutions are prohibited from charging them late fees, penalties, or interest on loans. However, this provision does not apply to loans for housing (including unfinished properties), vehicles, or certain energy equipment (photovoltaic modules and wind power units with hybrid inverters) for which the state or third parties already compensate interest.

Eligibility for this benefit and the conditions for obtaining it depend on the type of military service. If you were mobilized or called up as a reservist, the “credit holidays” take effect on the first day of service and remain in effect until discharge from military service. In this context, it makes no difference where you serve—on the front line or in a rear unit.

For contract service members and those in other types of service, a different approach applies. In this case, the key factor is direct participation in the defense of the country, either during the Anti-Terrorist Operation (ATO) or Joint Forces Operation (JFO) periods, or during the full-scale invasion after February 24, 2022. Participation in combat operations or defense activities for even one day establishes eligibility for interest and penalty waivers. This right takes effect from the first day of such participation and remains in force for the entire subsequent period of service during the special period. For example, if you took part in combat missions in 2015 and are still serving, the benefit remains in effect for you. Conversely, if a contract service member remained in the rear throughout and did not participate in the defense activities referenced above, this benefit does not apply. This benefit also does not extend to foreign nationals or stateless persons serving in the Armed Forces of Ukraine.

This provision is established by the Law of Ukraine “On the Social and Legal Protection of Military Personnel and Their Family Members” (Article 14, paragraph 15).

Required documents

To ensure that the bank stops accruing interest, the service member or their spouse must provide the lender with a set of documents.

For mobilized service members and reservists:

  • Military ID or officer’s ID card;
  • Form 5 (military service record);
  • Extract from the appointment order, if the type of service is not specified in Form 5 (military service record);
  • Marriage certificate (if the spouse claims the benefit).

For contract service members and other categories:

  1. Military ID or officer’s ID card;
  2. Form 5;
  3. Extract from the appointment order;
  4. Marriage certificate (for the spouse).
  5. Document confirming participation in combat operations or defense activities. The following documents may serve as confirmation:
  6. Form 12 (certificate confirming participation in combat operations);
  7. OR certificates issued in accordance with Annexes 1, 4, or 6 to Procedure No. 413 (the documents used to obtain Combat Veteran status).

All of these documents are prepared and issued by the unit’s personnel office at the place of service.

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