ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is a Grace Period? A grace period is a set length of time after the due date during which payment may be made without penalty. A grace period, typically of 15 days, is commonly included in mortgage loan and insurance contracts. 1.

Detailed explanation-2: -A grace period is the period between the end of a billing cycle and the date your payment is due. During this time, you may not be charged interest as long as you pay your balance in full by the due date. Credit card companies are not required to give a grace period.

Detailed explanation-3: -A moratorium period is a period during which the borrower is not obligated to make payments. In other words, during a moratorium period, the borrower is permitted to halt their payments. It is commonly incorporated in home loans – called an equated monthly installments holiday – and educational loans.

Detailed explanation-4: -A grace period falls between the time when a credit card billing cycle ends and when the payment is due. This grace period is an interest-free time frame that gives you several days to pay before the lender begins charging interest on the balance for that month.

Detailed explanation-5: -A grace period is the amount of time after your loan payment is due that you have to make your payment before it is considered delinquent. Credit cards have a 5-day grace period. Auto loans and mortgages have a 10-day grace period, so if your auto payment is due on the 15th, it is late on the 26th and so on.