What Is a Loan Extension Agreement?
A loan extension agreement allows borrowers additional time for their loans to mature. This agreement amends the original loan agreement by restructuring the borrower's payment schedule, including setting a new maturity date in place of the original loan. In addition, a loan extension agreement may include additional terms and conditions in the loan agreement to guarantee repayment of the loan by the borrower.
How To Create a Loan Extension Agreement?
Loan extensions exist in all types of loans, such as family loans and promissory notes, to name a few. And, these are often given to borrowers who find and consider the lenders trustworthy or to someone who has no record of a crime. Loan extensions should normally be documented in an agreement with any loan. And to do so, here are the steps to create a loan extension agreement.
Identify The Parties of The Loan
Set The Date the Original Loan Agreement was signed
Set The Amount Borrowed (Original Amount)
Set The Original Maturity Date
Set The new Maturity date or when the money must be paid back by.
Include Additional Terms and Conditions if Necessary
Execution Date of this Extension Agreement
Sign the Agreement, Notarize if Needed
Extend Many Types of Loans
Loan extension agreements are documents that extend the maturity period of a loan agreement. These are often used in different types of loans, such as the following:
auto loans;
business loans;
construction loans;
mortgages;
payday loans;
personal loans;
family loans; and
school loans.