Interval of time during which no payments are made on the instalments of a loan. During said period, the accrued interest is not paid separately, but is added to the principal amount owed. At the end of the principal and interest grace period, the outstanding balance will be equal to the original amount owed at the start of the grace period, plus the interest that has accrued and has not been paid during this period.
Temporarily reduced interest rate offered by a financial institution as part of a promotion or special offer. This type of rate is usually applied to financial products, such as loans, credit cards or savings accounts, for a limited period of time, with the aim of attracting new customers or incentivising specific transactions.