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A loan extension agreement allows borrowers to extend the maturity date of their current loan. This typically occurs when borrowers face difficulties, such as job loss or medical emergencies, rendering them unable to make payments. With a loan extension, borrowers can often skip a few months of payments while lengthening the loan term, though missed payments are added to the end of the loan. Additionally, for borrowers who fall behind, both the loan term and payment structures may be restructured during the extension. Generally, nearly any type of loan can be extended, and templates for these agreements can be found for free.
