SERVICEMEMBERS CIVIL RELIEF ACT 101: SCRA caps the interest rates on loans incurred prior to active duty at 6%. The rate reduction applies to the interest on all pre-service loans and obligations, including mortgages, car loans, credit cards and even federally guaranteed student loans. The interest over 6% is forgiven, not deferred. Lenders cannot deny or revoke credit, change the terms of an existing loan or refuse to grant you credit because you seek SCRA protections. Any claim of rights under SCRA cannot be used as the basis for a lender to decide that you are unable to pay a debt to generate an adverse credit report. To receive the interest rate deduction, a service member must make the request in writing and include a copy of his or her orders.