grace period


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Grace period

The time period stipulated in most loan contracts and insurance policies during which a late payment will not result in default or cancellation.

Grace Period

1. The time after the due date for a loan payment during which one may make the payment without any late fees or penalties. The length of the grace period depends on the loan terms, but is usually around 15 days.

2. The time after rent is due, during which one may pay rent without a late fee. The grace period for rent is usually five days.

3. In bonds, the time between the issue of the bond and the first coupon payment. This grace period usually applies to long-term bonds, where interest payments do not begin to occur for a few years after issue.

grace period

The period during which the issuer of a bond is not required to make interest payments. For example, a bond issued this year might only start paying interest five years from now. Bonds with grace periods are sometimes issued during a corporate restructuring.

Grace period.

A grace period is the number of days between the date a credit card issuer calculates your new balance and the date your payment is due.

In most cases, if you have paid the previous balance in full and on time, and you haven't taken any cash withdrawals, no finance charges are added to the amount of your purchases.

If you generally pay the entire balance due on time, you may want to choose a card with a longer rather than a shorter grace period, assuming the other terms are comparable. That gives you more time to be sure your payments arrive on time.

However, a minority of credit arrangements include a minimum finance charge, even if you do pay on time. Other lenders go back two billing cycles and will add finance charges if you have not paid the full amount due each time.

The grace period on a student loan allows you to defer repayment so that the first installment isn't due until six or nine months after you graduate or are no longer enrolled at least half time. The timing depends on the type of loan.

You also have a grace period in which to pay the premium on an insurance policy before the policy is cancelled. It's usually one month after the due date.

grace period

The allotted time during which a payment can be made without penalty and without entry upon credit records as delinquent or in default.

Grace Period

A number of days, usually 10 to 15, that a borrower is allowed to be late in making the mortgage payment without suffering any penalty.

References in periodicals archive ?
China's grace period protects all disclosures made without the
Announcing the results in a press conference yesterday and the great response in the first two months of the grace period (January and February), Humaid Bin Deemas Al Suwaidi, Assistant Undersecretary of Labour Affairs at the ministry, said that 10,000 companies benefited from this move, saving up to Dh250 million after setting around 20,000 violating labour cards.
Etisalat will cut service to customers after a 15-day grace period following their bill's due date.
However, the notice specifies "[a]s under current practice, employers may continue to provide a 'run-out' period after the end of the grace period, during which expenses for qualified benefits incurred during the cafeteria plan year and grace period may be paid or reimbursed.
If compliance is not achieved by August 30, 2010, the Company may be eligible for an additional 180 calendar day grace period if it meets The Nasdaq Capital Market initial listing criteria as set forth in Nasdaq Listing Rule 5505 other than the minimum closing bid price requirement.
The Saudi Press Agency citing the royal order said the original three-month grace period, which ends on July 4, will be extended to the end of the current Hijra year 1434, equivalent to November 4, 2013.
Jeddah, Sha'ban 23, 1434, Jul 2, 2013, SPA -- The Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud, has directed to extend the grace period for correcting the status of violating workers until the end of the current Hijri year 1434 AH as a maximum period.
Jeddah: July 2 -- (BNA)-- The Custodian of the Two Holy Mosques, King Abdullah bin Abdul-Aziz Al Saud, has directed an extension of the grace period for correcting the status of violating workers until the end of the current year Hijri 1434 H as a maximum period, according to the sisterly Saudi News Agency (SPA).
The Saudi Fund will extend $15 million loan for 25 years with a grace period of 5 years at 1% per annum.
As the grace period shrinks, however, increasingly-frequent messages appear on the screen.
The Ministry of Labor has said in clear terms that no more grace period would be granted to violators of residency and labor law regulations.
Good Energy campaigned alongside others in the solar industry for Government to amend the criteria suggested around the grace period, in order to allow projects that companies have committed significant investment to, to proceed to construction.