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A loan extension agreement allows the borrower to postpone the maturity date of an existing loan. These extensions generally occur when the borrower faces difficulties, such as job loss or medical emergencies, preventing them from making payments. The agreement typically permits the suspension of several payments while lengthening the loan term, meaning missed payments are added to the end of the loan. In some cases, if borrowers fall behind, both the loan term and payment structure may need to be revised. Almost any type of loan can be extended under these agreements.