Financial Protections
Interest Rate Cap (6%)
50 U.S.C. § 3937
Definition
The SCRA limits interest rates to 6% per year on all debts incurred before entering military service. This includes credit cards, mortgages, auto loans, student loans, and other obligations. The excess interest above 6% is forgiven, not deferred.
Legal Reference
This term is defined in 50 U.S.C. § 3937 of the Servicemembers Civil Relief Act.