What is a grace period in credit cards?

A credit card grace period is the interest-free window between your statement date and payment due date. It typically ranges from 18 to 50 days, depending on when during the billing cycle the purchase was made.

Does RBI allow a grace period after the due date?

Yes, the RBI has mandated a grace period after due date of 3 days before any late payment penalty is applied. This rule is set to come into effect from 1st April 2027 for all scheduled banks.

What happens if I miss the grace period?

Missing the grace period for personal loan EMI triggers penal interest, typically at 2–3% per month on the overdue amount. For credit cards, the free credit period in credit card is also forfeited, and new transactions start accruing interest immediately.

Is there a grace period for personal loans?

Yes, most Indian lenders offer a loan repayment grace period of 7 to 15 days after the EMI due date. Beyond this window, late payment charges apply, and the delay may be reported to credit bureaus.

How is interest-free period calculated?

The interest free grace period on a credit card equals the remaining days in your billing cycle plus the days until your due date. An early-cycle purchase can yield up to 50 days of interest free grace period, while a late-cycle purchase may give as few as 18–21 days.

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What is Grace Period in Credit Cards & Loans? Meaning, Benefits & Examples

Learn Grace Period in Credit Cards & Loans and understand how it helps avoid penalties, save interest, and manage repayments efficiently.

Anjali Singh

Assistant Manager

Published Date:Jun 8, 2026

Updated Date:Jun 8, 2026

Frequently Asked Questions

Anjali Singh

Assistant Manager

Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.

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