A loan application is a formal request submitted to a financial institution, such as a bank or credit union, seeking funds for various purposes, like buying a home or starting a business. The application typically requires personal information, financial details, and the amount of money requested. Once submitted, the lender reviews the application to assess the borrower's creditworthiness and ability to repay the loan. This process may involve checking the borrower's credit score, income, and existing debts. If approved, the lender will provide the terms of the loan, including interest rates and repayment schedules.