A loan application is a formal request made by an individual or business to borrow money from a financial institution, such as a bank or credit union. The application typically requires personal information, financial details, and the purpose of the loan. Lenders use this information to assess the borrower's creditworthiness and ability to repay the loan. Once submitted, the lender reviews the application, which may involve checking the borrower's credit score and financial history. If approved, the borrower receives the funds, which must be repaid over time, usually with interest. Common types of loans include personal loans, mortgages, and auto loans.