How to request a loan extension?

loan extension

A loan extension can save you in the event that you can't pay on time!

The end of the month is approaching, as well as the term established for the payment of that loan you requested. You don't know what to do and you fear the financial problems that running out of this deadline can bring.

Do not worry! Lenders are scary, yes, but they are not complete heartless monsters. In case you do not have enough money to make a payment on time, you can request an extension directly with your lender and get that valuable time to collect more money. Here we explain how:

What is an extension and what does it consist of?

A loan extension is, in a nutshell, an extension of the time limit for making a payment. That surely is like music to your ears. But you should keep in mind that they are not easy to get, so always do your best to pay the amounts established on time and without excuses.

When requesting an extension of the loan, a series of requirements must be met (which we will mention later). If your application is accepted, the lender grants you an extra period of time to gather the money necessary to make the payment. Different entities can offer various options in terms of time depending on the payment that has to be made and the financial complications that present. Or, in some cases, you can opt for a pre-set term yourself.

There are very specific situations in which the lender grants an extension of the loan, therefore always make sure that you enter into these exceptions if you do not want to have legal and financial problems in the near future.

Steps to request an extension

Thanks to the internet, it is now very easy to request this type of benefits without the need to go directly to the bank or lender, but you must always make sure that you meet the correct requirements.

  • Credentials When requesting an extension of the loan, you must have at hand the folio or number of the loan, the calendar that reflects the days scheduled to make the payments, and the receipt or history of the last payments made.
  • Go to the lender's website or contact information. Normally it is not necessary to go to the physical headquarters of your lender. Generally, this process can easily be done over the internet or through a phone call.
  • Make the payment. It may seem counterintuitive, but extensions are not always free. There is an additional cost for requesting one that must be paid for before it can take effect. Make sure to make the payment before the deadline of the month.

Once you've done these simple steps, and your extension is approved, you'll be able to breathe easier for a moment and enjoy some extra time. Keep in mind that an extension generates additional interest, and the longer the term, the higher the interest to be paid.

If after requesting an extension you still do not make the payment on time, this will be reflected in your credit history and negatively affect your finances, in addition to increasing the interest you must pay. If this becomes a very big problem, we recommend that you seek advice on how to keep your debts under control or acquire a source of extra income. 

You can also set up an account to save your savings. Not necessarily all the money has to go to pay your debts. It is good to have savings for emergencies and thus avoid problems and difficulties.

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