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A loan extension agreement permits the borrower to extend the maturity date of an existing loan. This typically occurs when the borrower faces difficulties, such as job loss or medical emergencies, making them temporarily unable to make payments. An extension allows borrowers to skip a few payments while lengthening the loan term, with missed payments added to the end of the loan. Borrowers may also need to restructure both the loan term and payments. Nearly all types of loans can be extended under these agreements, and there are options to modify other payment-related terms. Free templates for loan extension agreements can be found online.
