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A loan extension agreement permits the maturity date of a loan to be postponed. This is typically utilized when a borrower faces difficulties, such as job loss or a medical emergency, that hinder their ability to make payments. The extension allows for a suspension of payments for a period but generally lengthens the overall loan term, with missed payments added to the end of the loan. Additionally, if borrowers are behind on repayments, both the loan term and payment structure may need to be adjusted. Most loan types can be subject to extension, and options for altering payment terms may also be available.