This essentially means to carry-over the loan to the next period. If the borrower cannot make the payments in the first month, the lender makes room for the borrower to pay this amount in the second month. However, before giving out a rollover, the borrower has to pay the full interest charge.
Some lenders prefer to repossess the loan. Repossession takes place when a borrower takes another loan with better terms to repay the previous one.