Curious how other FIs handle payment extensions on consumer installment loans. Do you require that a flat payment amount be made or that a portion of a payment be made, or that interest be paid? What do you require as far as a payment goes in order to grant an extension? Or do you make a payment extension without requiring anything to be paid by the borrower?

State law dictates what you can or cannot charge for payment deferrals and what disclosures (if any) must be provided.

You should start there to see what your options are.

Thank you, appreciate the info.

If you are starting to offer extensions for the first time, you should look at any safety & soundness guidance or enforcement policies from your regulator. Since liberal extensions are an easy way to hide non-performing assets, your regulator will most likely look at your procedures.