Definition, Meaning & Synonyms
grace period
noun
/ɡreɪs ˈpɪriːəd/
Definition
A grace period is an interval of time following a due date during which a payment can be made without incurring penalties or additional fees.
Examples
- After the due date, you have a 15-day grace period to make your payment.
- Many lenders offer a grace period for student loans after graduation.
- During the grace period, no penalties will be charged for late payments.
Meaning
The term typically refers to the time allowed for a borrower to make a payment after its due date without facing negative consequences, such as late fees or adverse effects on credit rating.
Synonyms
- reprieve
- forbearance
- extension
