Extended term refers to lengthening the repayment period of a loan and spreading payments over more time to reduce costs per month. This adjustment can make loans more manageable for borrowers who need lower monthly commitments, but it often results in more interest paid overall. While extending a loan term can relieve short-term financial stress, it’s important to evaluate the impact on total costs. This is because the loan balance takes longer to reduce and brings in additional interest across the longer term.