We all know the word "loan," but do you know how to apply for a short-term loan extension when necessary? Loans, usually from banks or other financial institutions, are intended to meet the financial needs of individuals or units. Short-term loans are one of the different types of loans。

How do you apply for an extension on a short-term loan

If you need an extension, how do you apply? First, you need to know in advance the requirements relating to the extension of the loan, check whether your loan product has any extension options and know the conditions and limitations for applying for an extension。

Next, move early. Normally, you have to submit an extension application to the loan institution before the loan expires. Throughout the process, timely communication with lending institutions is important, so that you can clearly understand the time nodes and modalities of applications。

In addition, banks or other financial institutions are required to provide you with relevant information, such as an identity card, a certificate of income, a loan contract and the reasons for applying for an extension。

The extension of the loan can only be successfully obtained through an institutional review. Once the application is successful, you need to remember clearly the time of the extension and ensure that the payment is made in a timely manner。

As for the duration of short-term loans, it is usually within 12 months. There are three specific situations: temporary loans, usually for a period of three months; liquid loans, for a period of three to nine months; and working capital loans, for a period of nine to twelve months。

Short-term borrowing is now common to SMEs. As long as the repayments are made and interest is paid in a timely manner, the enterprise can normally make a rolling year-on-year loan to achieve the "short term" target。