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 ?
Buyers who paid either less than or at least two years of installments are entitled to: (a) sell their rights; (b) assign their rights; or (c) reinstate the contract by updating the account during the grace period and before actual cancellation of the contract.
For me, the removal of the grace period isn't necessarily a bad thing.
In June 2011, du, etisalat's main competitor, cancelled the 10-day grace period given to customers following non-payment of bills, instead opting for immediate cessation of services if bills are not paid within the due date.
There are some companies and employers who like delaying their payments, and because we don't want them to do that, we've had to take administrative action against some companies that did not take advantage of the grace period by refusing to issue further work permits, basically to push them towards fine settlement," he said.
For the Coops, the grace period has been set until January 2016, with the aim of concluding a viable repayment scheme and only after exhausting all other instruments.
The grace period itself was seen as a magnanimous decision on the part of the government, and everyone applauded it.
Third, this Comment proposes an ideal grace period that can serve as a
The IRS released a ruling in May that allows FSA plan sponsors to offer a grace period of up to two months and 15 days.
I don't think it's signposted clearly enough to let people know the grace period is only 10 minutes.
Finally, a purchaser should try to have his/her attorney negotiate a grace period in the purchase agreement for the purchase of the new apartment.
The grace period will allow Kluwer and its subscription agents to ensure that all orders for online access are properly processed during the busy renewal season.