Definition

Noun: * Formal authorization to get a loan (usually from a bank): The official act by a lender, such as a bank or financial institution, of agreeing to provide a borrower with a specific amount of money under defined terms and conditions. It signifies that the borrower's application has been reviewed and meets the lender's criteria.

Usage

• Loan approval is a formal status granted after a review process. It is typically a prerequisite for receiving the loan funds.
• It is often used in contexts involving personal finance, mortgages, business financing, and banking.
• Common collocations include: loan approval, loan approval, loan approval, loan approval, loan approval.

Examples

• Noun:
  • We are still waiting for loan approval from the bank before we can buy the house.
  • Her application received loan approval within 48 hours due to her excellent credit score.
  • The loan approval letter outlined the exact amount and interest rate.

Advanced Usage

• "Conditional loan approval": A preliminary approval that is subject to the borrower meeting specific additional requirements, such as providing further documentation.
  • We have a conditional loan approval, but we must submit our recent tax returns first.
• "Final loan approval": The last and definitive authorization, often given after all conditions have been met and just before the funds are disbursed.
  • The underwriter granted final loan approval yesterday, so the closing is scheduled for Friday.

Variants and Related Words

• Approval (n): The general action of officially agreeing to something or accepting it as satisfactory. (e.g., )
• Loan (n): A sum of money that is borrowed and expected to be paid back with interest.
• Pre-approval (n): An initial assessment indicating how much a lender may be willing to lend, based on a preliminary review of the borrower's finances. This is not a guarantee or a formal loan approval.

Synonyms

• Credit authorization
• Financing clearance

Related Phrases

• To secure loan approval: To successfully obtain formal authorization for a loan.
  • They worked for months to improve their credit and secure loan approval.
• To be subject to loan approval: A condition stating that an agreement (like a purchase) is only valid if the borrower obtains formal loan authorization.
  • Our offer on the home is subject to loan approval.

Noun

1. formal authorization to get a loan (usually from a bank)