Common Contracts
1 similar Loan Extension Agreement contracts
Loan extension agreement templateLoan Extension Agreement • June 4th, 2023
A loan extension agreement is a contract used for lengthening the due date of a loan. This allows the borrower to “skip” one (1) or more loan payments by simply adding them to the end of the loan. The agreement can also be used to alter any of the original terms of the loan agreement as long as both parties are in agreement with the proposed changes. Why Extend a Loan Agreement? A borrower may request to have their loan extended for many reasons, including a life emergency, the loss of a job, an unexpected payment, or another event that leaves them unable to make their upcoming payment. While offering the borrower an extension or restructuring of terms is the lender’s choice, it is only recommended if the borrower has been consistent with their payments thus far. A loan extension can make a huge difference in a borrower’s life, as a missed payment can wreak havoc on one’s credit score, cause them to lose the collateral they put up for the loan, and many other unfavorable outcomes. How
