A grace period is a period during which using the card’s credit money costs no interest, provided you repay the amount spent in time.
In plain words
These are the “interest-free days” on a credit limit: you buy on credit and pay the full amount back before the end of the grace period, so there is no interest. If you are late or pay back only part, interest may be charged from the date of the purchase (it depends on the bank’s terms). A grace period usually covers cashless purchases, while cash withdrawals and transfers may be excluded or charged. Always read the terms in your contract and the tariffs.
Example. The grace period is 50 days (illustrative). You buy a TV for UAH 10,000 and repay the whole amount on day 40: no interest. Had you repaid only part, the bank could have charged interest under the contract.