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A loan extension agreement allows the maturity date of a loan to be postponed, often due to circumstances like job loss or medical emergencies that prevent the borrower from making payments. This agreement typically enables borrowers to suspend certain payments while extending the overall loan term, meaning missed payments are added to the end of the loan period. In cases where borrowers are behind on payments, both the loan term and payments may need restructuring. Most types of loans are eligible for extension. Additionally, templates for such agreements can often be found for free.
