The Servicemembers Civil Relief Act (SCRA), formerly known as the Soldiers' and Sailors' Civil Relief Act (SSCRA), is a federal law that provides protections for members of the military or armed forces, reservists, and members of the National Guard while on active duty, as well as their spouses and dependents. The protection begins on the date of entering active duty.
The SCRA allows servicemembers to devote full attention to military service by minimizing their civil obligations while on active duty. SCRA provides protections from foreclosure, vehicle repossession, cell phone contracts, and other protections. In regards to Scratch loans, the SCRA caps the interest rate that applies to a servicemember’s loans while on active duty. The interest rate cap is 6%.
Additionally, some lenders may have servicemember benefits beyond those required by SCRA. For example, some lenders may include military deferment during periods of active duty. Check your promissory note or contact us for more information about military deferment.
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