Is It Possible To Prolong A Small Loan?

Payday loans are one of the most beneficial cash advance to take. They are quite cheap. It is one of the main reasons why there are so popular among households.

Payday loan amount is not that big. It ranges from 400 to 2000 dollars. Very often financial companies issue 600 dollars to people. The highest microcredit loan can be given to those who have high income.

Loan Prolongation

When a person applies for a loan, he has to present certain documents. He has to sign  the Loan Agreement. It states when a personal loan has to be retained. Here is how the borrowing process goes:

  • A person gives application documents for examination. Financial companies evaluate the profile and send their offers.
  • A person chooses the most advantageous microcredit to get. He signs a Loan Agreement.
  • Money will be transferred to borrower’s account within several hours the Agreement is signed. From that time on, an applicant can use borrowing the way he likes.
  • When a date of a microcredit returns comes, money plus commission will be taken from a borrower’s account.

There are many cases when term of microcredit usage is too short for an applicant. He is not able to return finance back in time. If that is the case, one should ask for a loan prolongation. It is good to do it before a return date comes. This way, an applicant will omit unnecessary charges.

It is not for sure that financial companies will postpone the payback. It is a matter of negotiation. Here is what arguments can help to prolong a loan:

  • Clear reason why a person asks for prolongation. It is not a good idea to invest. A banker has to trust what a person says. He will then take a proper decision.
  • An applicant has to agree to pay additional commission. The longer one uses borrowed money, the more he has to pay. If loan is prolonged, commision can be doubled compared to initial rate.
  • A person has to provide guarantees. It is good to show that a borrower has property or other assets. If a person does not return money in time, bankers can confiscate part of belongings.

Loan prolongation is a tough process. It is better to take a loan, that can be returned in time. This will make borrowing much cheaper. It will also let a person to get a high credit score.

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