What Is A Grace Period?

A grace period is the period of time between the date that you sign for a loan and the date you must begin making repayments to the lender. The length of the grace period varies depending on the type of loan and the lender. A longer grace period is particularly helpful for borrowers who need some time to grow their bank account before they’re ready to start repaying their loan. Remember, even though you don’t have mandatory repayments during the grace period, many loans still accrue interest during this time.