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A loan extension agreement allows the maturity date of a current loan to be extended when the borrower faces difficulties in repayment. This can be due to job loss, medical emergencies, or other circumstances. Loan extensions typically allow borrowers to suspend payments temporarily and extend the loan term. Missed payments are added to the end of the loan. In some cases, the loan term and payments may need to be restructured. Loan extensions can be applied to nearly any type of loan.
