SCRA Military Interest Rates

Service members should be aware of the Servicemembers Civil Relief Act (SCRA), which provides legal and financial safeguards. This legislation shields you from the obstruction of legal or financial transactions that could impede your rights during military or uniformed service. Our guide below addresses common queries such as: How long do SCRA benefits last? and What qualifies for SCRA interest rates? Don't hesitate to contact our dealership near Loudoun County for further inquiries or additional information.

What Are Interest Rates for Active Duty Military?

Curious whether SCRA can reduce your interest rate when buying a new vehicle? Absolutely! With this initiative, you can decrease your interest rate to six percent on any pre-service loans (such as auto, home, or student loans) obtained before joining the service.

How Do I Qualify for SCRA?

Wondering if you're eligible for SCRA interest rate relief? To qualify, you must be one of the following service members:

• Active Duty: Army, Marine Corps, Navy, Air Force, and Coast Guard
• Active duty commissioned officers of the Public Health Service or the National Oceanic and Atmospheric Administration.
• Members of the National Guard component mobilized under federal orders for more than 30 consecutive days
• Members of the Reserve component while on active duty

Those who want to take advantage of these exciting benefits can reach out to their lender in writing and include a copy of their active duty orders or a letter from their commanding officer to confirm their active duty start date.

What is Covered by SCRA?

Although SCRA offers excellent benefits, active members should be aware that it does not extend to loans acquired during active service. This program is specifically for loans obtained prior to commencing active duty.

How Long do SCRA Benefits Last?

Rate reductions for your pre-service obligations remain in effect during your active duty service for most mortgages and loans, extending for up to a year after your service concludes. Upon submitting the necessary request, your lender is obligated to lower your interest rate to six percent for the duration of your service. Requests can be initiated while on active duty and up to 180 days after release. Furthermore, your lender is prohibited from adding any interest amount exceeding six percent back into the loan once you transition from active duty.

Learn More About SCRA Military Interest Rates Today!

For further details, feel free to reach out to our sales team. We take pride in serving the commuter community in Sterling and assisting members from the DC Metro area and the DMV who serve in purchasing a vehicle. As your reliable Sterling BMW dealer, we're committed to addressing all your financing and leasing requirements. Whether you seek information about our military discount or assistance in finding your next new or used car, count on us at BMW of Sterling.