Extension loans are not something that must be paid attention to. Loans after extension are managed as new loans, and the risk classification of extended loans can only be classified as a concern category.

Loan extension refers to the borrower's behavior of deferring loan repayments after applying to the lending bank and obtaining approval. If the loan cannot be repaid when it expires, the repayment time can be extended upon approval. Loans must be repaid when they are due, which is a credit principle that enterprises must abide by and is also a prerequisite for banks to accelerate the turnover of credit funds. If the enterprise encounters special circumstances and is indeed unable to repay the loan on time, it should submit an application and explain the situation. After review and approval by the bank, the repayment time can be extended, but it must go through the rollover procedure, otherwise the loan will be treated as overdue. A previous type of extension was the second time a lender extended a loan during the term.

Loan extension is because the borrower does not have the funds to repay when due. After negotiation with the bank, the bank determines that the borrower only has temporary capital turnover problem or the loan is not withdrawn in time. It is expected that within a certain period of time, the loan will be extended. If the loan can still be repaid, a supplementary agreement will be signed with the borrower on the original loan before expiration, and the period will be adjusted to a certain extent. If necessary, other terms of the original loan contract will also be renegotiated, such as Increase the consideration or add guarantee conditions. The bank only needs to perform system processing to extend the period and does not need to perform accounting processing on the funds.

If the lender encounters temporary capital turnover difficulties during the loan period, resulting in the inability to repay the loan principal on time, and meets the conditions for extension, under normal circumstances, it must apply to the lending bank for an extension 30 working days in advance. The loan extension period shall not be lower than the original loan terms: the short-term loan extension period shall not exceed the original loan period; the medium-term loan extension period shall not exceed half of the original loan period; the long-term loan extension period shall not exceed 3 years at most.

Loan extension:

If the loan cannot be repaid on time, the borrower should apply to the lender for a loan extension before the loan maturity date. It is up to the lender to decide whether to extend the loan. When applying for the extension of a guaranteed loan, mortgage loan or pledged loan, the guarantor, mortgagor and pledger must also issue a written certificate of consent. If there is an agreement, it shall be implemented in accordance with the agreement. The cumulative extension period of short-term loans shall not exceed the original loan period; the cumulative extension period of medium-term loans shall not exceed half of the original loan period; the cumulative extension period of long-term loans shall not exceed 3 years. Unless otherwise provided by the state. If the borrower does not apply for extension or the application for extension is not approved, the loan will be transferred to the overdue loan account from the day after the expiration date.