Whenever an individual takes a consumer loan, he/she needs to repay that loan on time to avoid repeated collection reminders. However, due to some personal issues, a loan taker may be unable to pay the loan when the deadline is about to come. In this article, we shall consider the advantages of expanding the loan terms in case you are wondering about it:
What is “loan extension”?
Loan extension is a necessary solution for a customer who wants to expand the time of using credit resources. This kind of solution is supported by the lending agency (bank or financial institution) and it can be free or be charged an amount of fee.
Loan extension can also be called a “prolongation” or a “roll over”, which is available during the entire period of a loan. Some financial organizations support the customers to take many extensions for a loan, but the others only support once.
Unlike the delay of payment, once you roll over, you will never be penalized. Taking prolongation will also not impact the credit score of a person, as long as that one pays the full amount of the loan on the new promised date.
Prolongation is convenient for consumers as it saves time significantly. In case both parties wish to finalize the new loan term, the action could be completed online without spending time visiting the bank’s company to re-issue papers.
OnCredit is an online lending consultant agency in Vietnam, aiming at connecting the customers to our lending partners to issue a quick loan. You can take the loan and roll over your loan with our partner without complicated paperwork. Contact our service to be advised about how to quickly apply for a loan 24/7 (vay ti?n online nhanh 24/7)
Are you qualified enough to take a loan extension?
It is important to take advice from your financial advisor several months/days before taking a prolongation so that you can decide which option is best for you.
Every lender has different criteria for customers who want to lengthen their loan term. However, you probably need to show them that your situation was unexpected and would be temporary (for example: you need expenses for medical purposes or a car repair). You also need to prove that you are still able to make payment in the future.
Moreover, lenders can also require a history of on-time payments of your so that they can approve the request or not. Also, as said above, the financial institutions will have policies that limit the number of extensions for each loan.
In short, the decision of issuing a loan extension or not belongs to the lenders. Remember: Make sure you have asked your lender if there are any fees before agreeing to an extension.