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About what is prolongation
When making any deposit, the client signs a relevant agreement with the bank. In it, in addition to the deposit amount, the main terms of the deposit must specify: the term of the deposit, the possibility of early termination of the contract or its extension after the deposit term, the possibility of replenishing the deposit. Each of these nuances is undoubtedly extremely important. However, the text of the treaty itself is sometimes so specific that it is completely unclear to the man in the street who is talking about at one point or another.
The concept of an extension of the term of the agreement is also applied in lending and some other areas of activity of banks. In particular, many borrowers are aware of the prolongation of the contract , which was taken by surprise by the latest financial crisis. When people collected loans and after some time realized that they can not pay them off, they began to look for possible exits from the situation. In addition to the sale of collateral that was offered by banks on mortgage and other secured loans, one of the ways out was just the extension of the term of the loan agreement in order to minimize the monthly payment. In this situation, of course, there was no question of any automatic prolongation. To extend the payment period, the client had to apply to the bank himself, write a statement and convince himself that the new payment would be up to him. Only in this case he was able to sign an additional agreement and reduce payments.
If we consider the question of what is the prolongation of the contract, but without reference to loans, deposits and banks in general, then literally this term means "extension of the term". That is, to prolong the contract means to postpone the final date for its implementation, naturally, by mutual consent of the parties.
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