Loan approval is the process where a lender decides whether to give you money based on your financial situation. When you apply for a loan, the lender reviews your credit history, income, and other factors to assess your ability to repay the loan. This helps them determine the risk involved in lending you money. Once your application is reviewed, the lender will either approve or deny your loan request. If approved, you will receive the terms of the loan, including the interest rate and repayment schedule. Understanding this process can help you prepare better when seeking a loan from a bank or credit union.