Loans with a Repayment Extension Option: How to Extend the Term Without Excessive Penalties

If you already know that you will not be able to repay a loan on the original due date, requesting an extension before the deadline may be better than allowing the debt to become overdue. In Colombia, however, an extension does not automatically mean “extra days for free”: the lender may continue charging interest, modify the repayment schedule, or apply additional conditions that must be disclosed in advance. The key is to understand exactly how much the extra time will cost and compare that amount with the consequences of paying late.