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SCRA Interest Rate Limits

Interest rate

One of the most significant provisions under the Servicemember's Civil Relief Act (SCRA) limits the interest rate on debts.

The SCRA says that any debt you have before joining the military, either credit card, auto loan, or mortgage will have the interest rate limited to 6% while you are on active duty.

You must have made the purchase or incurred the debt before you joined the military, and the interest rate is limited to 6% forever, even after you leave the service.

Your monthly payment must also be reduced to reflect the 6% interest rate cap.

Contact your local legal office for more information.

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