Dear customers,

Please be further informed regarding loans that have a grace period

Interest accrued on loans that have a grace period will become due after the grace period expires, in accordance with a respective schedule. If such a loan is prepaid partially or fully during the grace period, the borrower will settle all outstanding payments accrued up to the date of prepayment, including the interest accrued before the mentioned date. If prepayment is done after a grace period, the client will settle the total amount of interest accrued during the grace period, as well as other outstanding payments.


Example: The loan was disbursed on the following terms:

Loan amount: 2000 GEL

Interest rate: 10%

Tenor: 12 months

Grace period on principal and interest -  3 months

Life insurance - 0.72%

Date of disbursement: 13/06/2019

Date of the first payment: 28/07/2019 (Only insurance premium is paid)

Date of the first payment after the grace period (along with insurance, the amount due includes current principal and interest payments as well as the rescheduled interest, i.e. a portion of the interest accrued during the grace period): 28/10/2019

Maturity date: 16/06/2020


Interest accrued on such loans during a grace period (13/06/2019 – 28/09/2019) amounts to 58.63 GEL and is payable after the grace period according to the following schedule:

Note: The rescheduled interest (i.e. the interest accrued during a grace period and distributed over subsequent months) is added to monthly interest payments under the Repayment Schedule.

The client only pays the insurance premium during the grace period.

  1. If a client prepays during  the grace period, e.g. on 27.08.2019, apart from other payments (insurance and the early repayment charge), the amount due will also include the interest accrued during the grace period up to the date of prepayment, which in this case makes 41.10 GEL.
  2. If a client prepays, on the first payment date after the grace period (28/10/2019), apart from other payments (insurance, accrued interest and the early repayment charge), the amount due will also include the total amount of interest accrued during the grace period, i.e. 58.63 GEL.
  3. If a client prepays on any subsequent payment date after the grace period, e.g. on 28/12/2019, by that date, the client will have paid more than one month's rescheduled interest – in this case, 2 months' rescheduled interest (12.01+5.83=17.84 GEL). Therefore, apart from other payments (insurance, accrued interest and the early repayment charge), the amount due will include the remaining portion of interest accrued during the grace period (58.63-17.84= 40.79 GEL).

Thank you for using our services.
JSC TBC Bank