What is a likely outcome of modifying loan terms for a client in financial distress?

Modifying loan terms for a client in financial distress often involves adjusting the existing conditions of the loan to make it more manageable for the borrower. One common outcome of this modification is the extension of the loan maturity period. By doing so, the borrower can spread out their payments over a longer time frame, which typically results in lower monthly payments. This adjustment can provide the borrower with some immediate financial relief, allowing them to manage their cash flow more effectively while still working towards fulfilling their loan obligations.

Extending the maturity period does not typically lead to increased monthly payments or higher interest rates; rather, it helps alleviate the financial burden that the client is experiencing. Maintaining the same loan structure would not address the underlying issues the borrower faces, making a modification necessary to provide adequate support.