How to apply for a one-year extension when the loan expires?
When the applicant is sure that it is really overdue, it needs to apply to the financial institution for deferred repayment. Applicants who need to postpone repayment must apply 15 days before the repayment date. Deferred repayment is suitable for borrowers with real cash flow difficulties. In this case, it is necessary to explain the situation to the lending institution in time and apply for a grace period. After the Lender agrees to go through the formalities of deferred repayment, the Lender will charge interest according to the loan interest rate agreed in the Contract. If the lender judges that the situation is true, it will generally agree to postpone the repayment, but it will also generate a certain penalty interest. The penalty interest for failure to repay on time shall be charged according to the loan interest rate. Deferred repayment is not unlimited. Usually the bank will stipulate a certain number of deferred payments. When handling the extension, we need to pay attention to the issue of guarantee, and the guarantee period is usually the same as the loan period.
How long is the longest extension of corporate loans?
Loan extension refers to the behavior that the lender delays the repayment of the loan after applying to the loan bank and obtaining approval. If the loan cannot be repaid at maturity, the formalities for extending the repayment time shall be handled after approval. It is a credit principle that enterprises must abide by, and it is also a prerequisite for banks to speed up the turnover of credit funds. If the enterprise fails to repay the loan on schedule due to special circumstances, it shall apply and explain the situation. After the approval of the bank, the repayment time can be extended, but the extension procedures need to be handled, otherwise it will be treated as overdue loans. Under normal circumstances, apply to the loan bank for extension 30 working days in advance. The loan extension shall not be lower than the original loan conditions: the short-term loan extension shall not exceed the original loan term; The extension of medium-term loans shall not exceed half of the original loan term; The longest extension of long-term loans shall not exceed 3 years.