Related Benefits Articles

  • Insurance
    SCRA Insurance Protection
    Military.com
    Military members who risk losing life or health insurance due to mobilization or deployment are protected by law
  • Tax time
    SCRA Taxation Protections
    Military.com
    Servicemember's Civil Relief Act prevents double taxation when a spouse works in a state other than the permanent legal residence
  • Miniature house on a stack of dollar bills.
    SCRA Rental and Eviction Protection
    Military.com
    The Servicemember's Civil Relief Act (SCRA) protects your dependents from being evicted while you are serving your country.
  • Scales
    SCRA Judicial Proceedings
    Military.com
    The Servicemembers Civil Relief Act protects servicemembers from certain judicial proceedings until return from military service
  • Interest Rate Bait
    SCRA Installment Contract Protection
    Military.com
    Military members may be protected by law if they have an installment contract that began before they entered the military

Most Popular Benefits Articles

  • Department of Veterans Affairs
    2016 VA Disability Compensation Rates
    Military.com
    The following tables show the current VA compensation rates for veterans with a disability rating 10 percent or higher.
  • us map with state abbreviations
    State Veteran's Benefits
    Military.com
    Every state and territory offers benefits for veterans and their families. See our details, updated for 2016!
  • Military Pay Charts
    2016 Military Pay Charts
    Military.com
    Check out the 2016 US military pay scale charts for all ranks for active duty, as well as Reserve and Guard components.
  • Airman helping service member with paperwork
    Proposed Military Pay Charts for 2017
    Military.com
    The House has proposed a 2.1 percent increase in military pay for 2017. The White House is pushing for 1.6 percent.
  • Marine retirement
    The Military Retirement System
    Military.com
    The following is a summary of what you need to know regarding Military Retirement pay benefits.

SCRA Interest Rate Limits

Interest rate

One of the most significant provisions under the Servicemember's Civil Relief Act (SCRA) limits the amount of interest that may be collected on debts of persons in military service to 6% per year during the period of military service.

The SCRA unambiguously states that no interest above 6% can accrue for credit obligations (that were established prior to active duty or activation) while on active duty, nor can that excess interest become due once the servicemember leaves active duty - instead that portion above 6 percent is permanently forgiven.  Furthermore, the monthly payment must be reduced by the amount of interest saved during the covered period.

Related Topics

SCRA

Military News App by Military.com

Download the new Military.com News App for Android on Google Play or for Apple devices on iTunes!

© 2016 Military Advantage