What is a term extension and how does it work
Some of us find ourselves in a financially difficult situation at one time or another. But know that you are not alone and there are debt relief options available that can help you get back on track and ease some of your financial pressure.
A term extension is a debt relief solution that might help you get back on track with your monthly loan repayments.
Before making any financial decisions, speak to a financial advisor or registered financial professional. Visit our Debt Care Centre to get in touch with a representative who can guide you through the process.
What is a term extension?
A term extension allows you to extend the time period (also known as the term) of your loan.
If you qualify for an extension, you can increase the time (or months) in which you must repay your loan, helping you reduce the monthly payments you’re required to make.
How does a term extension work?
Extending the term of your loan means that you’ll have more time to pay back your loan.
If you qualify for an extension on your loan, you’ll still be charged an interest rate and you may be paying back more on your initial loan amount than what you planned.
While the agreement with your financial institution may vary based on the institution, this type of agreement typically specifies the new loan repayment period and the monthly repayments you’ll need to make.
One of the benefits of a term extension is reducing your monthly loan repayments. This can help keep you from falling behind on your debts and meet your monthly repayments.
Qualifying for an extension is based on several factors, including your financial situation and the reason you need an extension.
If you find yourself under financial pressure and struggling to make your monthly loan repayments, you can visit our dedicated Debt Care Centre and see if you qualify for a term extension on your Standard Bank loans.
Remember that a term extension is not your only debt relief option available. You can also learn more about how payment holidays, debt consolidation and re-spread of arrears work.
Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).
Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for the information provided in this article or that it is free from errors or omissions.