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A loan extension agreement allows borrowers to postpone the maturity date of their loan, providing additional time for repayment. This typically occurs when borrowers face financial difficulties, such as job loss or medical emergencies, which hinder their ability to make payments. During a loan extension, borrowers may suspend a few payments, but these missed payments will be added to the end of the loan term. Additionally, if borrowers fall behind on payments, the loan terms and payments may be restructured. Nearly any type of loan can be extended, and there are options to modify other payment-related aspects when extending a loan. Free templates for these agreements are available online.