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The loan duration refers to the defined period of time over which a loan agreement remains in effect and repayment is expected.
Loans can be categorized into two types based on the loan duration: fixed loan duration and indefinite loan duration.
- 1.Fixed Loan Duration: After the loan duration of loan offer is set non-zero by lender, the lender will not be able to seek a new lender or transfer the debt to others when they cannot find a suitable offer. If the borrower fails to make repayments or refinance the loan within the loan duration, it will be considered a default on the loan.
- 2.Indefinite Loan Duration: The loan duration of loan offer is set to zero by lender. When the lender is unable to find a suitable offer for refinancing, they can seek a new lender and explore other options for debt transfer. If during the process of seeking debt transfer, there are no new lenders or others available to facilitate the transfer, the debt will be considered in default.