ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -That’s because of the credit card grace period. When there’s a grace period in effect, you are not charged interest on the purchases you make. The grace period starts with the 21 days between the date your credit card bill is generated the due date of that bill.

Detailed explanation-2: -During a grace period, you may not be charged interest on your balance-as long as you pay it off by the due date. Grace periods vary by card issuer, but must be a minimum of 21 days from the end of a billing cycle.

Detailed explanation-3: -The length of a grace period is typically six months, but it can vary depending on the type of loan you received. The promissory note you signed for your loan tells you the length of your grace period.

Detailed explanation-4: -A grace period is a time period automatically granted on a loan during which the borrower does not have to pay the issuer any monies toward the loan, and the borrower does not incur any penalties for not paying. Payments may be made during both grace periods and deferment but are not required.

Detailed explanation-5: -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.