Apply For a Bank Loan Extension

You can apply for bank loan extension if you are having a hard time meeting your financial requirements. There are countless reasons why a borrower may suddenly find himself or herself in a tight bind. Furthermore, for the most part, lending institutions allow loan extensions rather than go through all the process of bringing a defaulting borrower to the court or, worse, dealing with bad debts in their books. However, as a borrower, it is your role to read the terms that are applicable to your loan. There are specific conditions where your lender will accommodate your request for an extended payment period. Under those conditions, you will also find the steps involved when applying for a loan extension.

When to Apply for Bank Loan Extension

Typically, lending institutions have a definite number of days or period when a borrower can file for a loan extension. Many lenders can still accept applications even on the last day before the loan payment becomes due. In most cases, it is impossible for a borrower to miss this date or period because it will be clearly specified in the loan agreement and the lender will also notify you via snail or electronic mail one or two days before your loan becomes collectible.

Where to Apply for Bank Loan Extension

Thanks to the Internet, many lending companies can now accept applications for loan extensions on their websites or through emails from borrowers. Still, most borrowers prefer to apply for additional weeks or months in their loans via phone or a personal visit to the lending office.

What to Expect When Loan is Extended

Well, after your request has been approved by the lender, you can breathe easily for the time being. But remember, your problems are not over until you pay for your loan in total. Usually, you will have two things to expect when your loan has been extended. First, your lender may require you to pay the interest charges first. Second, the lending institution may also require you to pay part of the principal on top of the accumulated interest charges. It is also common for banks and other lending institutions to charge the borrowers with an extension fee that is separate from the principal and interest payments.

In the end, always remember that the power to extend loans lies in the hands of the lenders. In some places in the US, loan extensions are not even granted to borrowers. You are lucky if the lenders in your state can accommodate requests for extending loan due dates. One good thing about getting an extension approval is the fact that your credit will not be downgraded as compared to simply waiting for your loan to fall due and become delinquent. As a final tip, instead of paying for the total loan after the extension has expired, ask your lender if you can divide the remaining loan balance into several installments based on the weeks or months of the extension.

 


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