grace period

noun

: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation

Examples of grace period in a Sentence

The terms of the loan allow for a ten-day grace period.

Recent Examples on the Web

Interest-Free Period Credit cards usually come with an interest-free grace period, typically lasting 20 to 30 days after the statement date. —True Tamplin, Forbes, 16 Oct. 2024

On Monday of that week, a yearlong grace period ended for student loan borrowers struggling to make payments since the pandemic pause lifted a year ago. —Zachary Schermele, USA TODAY, 13 Oct. 2024

OneMain Financial Best for payment grace period: Avant Best for no credit history: Upstart Best for 6-month term: PNC Bank Looking to consolidate debt or make home improvements? —Jasmin Suknanan, CNBC, 2 Oct. 2024

Another 12 states – including California, Florida and New York – and the District of Columbia have similar grace periods ranging from one to 10 days for absentee ballots. —Bart Jansen, USA TODAY, 7 Oct. 2024

Word History

First Known Use

1907, in the meaning defined above

Legal Definition

grace period

noun

grace pe·​ri·​od

: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as

a

: a period of 30 days or one month during which premiums on insurance policies may be paid without penalty

b

: a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code

called also days of grace