BANKING AFFAIRS

Detailed explanation-1: -It is important to note that the grace period is interest-free only if you make your payments on time (before the due date) Generally, the grace period, as granted by the Indian banks, is of 20 to 60 days. The grace period is also referred to as the ‘interest-free period’

Detailed explanation-2: -The deferment period is an agreed-upon time during which a borrower does not have to pay interest or principal on a loan, such as with a student loan.

Detailed explanation-3: -The payment due date on your credit card can be between 18 and 25 days after the statement date, the day when the statement is made. So, the interest-free credit period can range from 18-48 days to 25-55 days depending on your credit card’s payment due date.

Detailed explanation-4: -If you have missed your credit card payment due date, don’t panic. The Reserve Bank of India (RBI) has told banks and credit card issuers that they can charge late payment fees only after three days following a missed payment.

Detailed explanation-5: -A moratorium period is a period during which the borrower is not obligated to make payments. Interest on a loan during the moratorium period generally accrues. A moratorium period is commonly incorporated in home loans and educational loans.