Loan issues | New loans are now prohibited for conscripts

During compulsory military service, banks and microfinance organizations are not allowed to issue new loans or microloans to servicemen. Previously, conscripts could receive a payment deferral on existing loans for the duration of their service and an additional 60 days, but new loans could still be issued, creating a risk of returning from service with debt.

Banks and microfinance organizations must now independently verify a serviceman’s status through information exchange with the Ministry of Defense and refrain from issuing new loans during military service. If a loan is issued despite the restriction, the financial institution must stop collection efforts, refund penalties and interest, write off the debt, and remove the record from the borrower’s credit history.