Loan Tenure Extension: When Should You Ask For It?

Anyone who has lived or been in Singapore knows that it is a bustling metropolis where the cost of living is as high as our aspirations. Sometimes, though, we might find ourselves burdened by our loans.

Asking for a loan tenure extension, though, is easier said than done. Who wants to admit that they are struggling? Nobody likes to do something as awkward as that.

When should you consider asking for more time?

Contrary to popular belief, licensed money lenders online might appreciate those who ask for a loan tenure extension more than those who abandon their loan duties altogether. The truth is there is (or there should be) no shame in admitting that you might need extra time to pay, especially when you are in a challenging situation.

Are you constantly scraping together the money for your loan payment?If it is affecting your ability to cover other essential expenses, it might be time to talk to your lender. If you have experienced a significant financial setback such as job loss, or major medical expense, it is also best to reach out to your lender rather than throwing your finances into a tailspin.

Maybe you are saving for a down payment on a house or planning a wedding. Extending your loan tenure can free up some cash flow to help you reach your goals. The thing is, it can be easier to talk to your lender upfront about your financial struggles than feeling anxious day by day as your deadline nears.

What to expect? How to ask?

However, asking for a loan tenure extension is not guaranteed for an automatic approval. Lenders have their own rules and criteria. Generally, they will consider your repayment history, your current financial situation and the reason for your request.

If they deem you fit for an extension, they will likely decrease our monthly payments. This is huge for you! This means you may now manage your finances more effectively. But remember, extending the loan term also means paying more interest overall.

Now, when talking to your lender, explain your financial challenges clearly and calmly. It is also helpful to have a plan in place. For example, if you have experienced a job loss, outline your job search efforts and expected timeline for returning to work. The key is to be as honest as possible.

Many are under the impression that lenders are heartless business people, but that is rarely the case. They are people too, and like you, they understand that life happens. You just need to be open and cooperative, that is all.

Are there other options?

It never hurts to explore other options. Maybe you could cut back on your expenses, like cooking instead of ordering take outs or chilling at home instead of going to the movies. Perhaps you have unused items that you could sell.

You see, making small adjustments can make a big difference sometimes, especially when we are in a difficult financial situation. There are also other financial products available, like debt consolidation loans or refinancing from 111 Credit or other lenders. 

Regardless of your decision, asking for a loan tenure extension is not something to be ashamed of. It is a practical solution to a common problem.