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#2258472 - 08/20/21 03:26 PM MLA SCRA Interest Rate Limit
Anonymous
Unregistered

Beside the 36%MAPR is there a limit on the interest rate for a loan to a active duty service member? Can a loan have a rate over 6%?

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#2258508 - 08/20/21 07:44 PM Re: MLA SCRA Interest Rate Limit Anonymous
Inspector Offline
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Joined: Apr 2016
Posts: 250
It would depend on when the loan was originated in relation to when the person entered active duty. If this is a new loan then the 36% MAPR may be relevant dependent upon the loan type. If this is a loan made to a person who was not on active duty when they received the loan but is now and is making a request for interest rate relief under the SCRA then the 6% limit would come into play.

https://www.justice.gov/servicemembers/servicemembers-civil-relief-act-scra
Last edited by Inspector; 08/20/21 07:45 PM.
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#2258510 - 08/20/21 08:01 PM Re: MLA SCRA Interest Rate Limit Anonymous
Skittles Offline
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Skittles
Joined: Sep 2002
Posts: 13,935
TN
Remember - SCRA is for individuals who go on active duty after the loan has originated. MLA is for individuals who are on active duty (or a dependent of an active duty servicemember) when the loan is originated.
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