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 includes personal and financial information about the borrower, as well as details about the purpose of the loan and the amount being requested. Lenders use this information to evaluate whether the applicant is likely to repay the loan on time and in full, and to determine what interest rate and terms to offer. A successful loan application can result in access to funds for a variety of purposes, such as purchasing a home or car, paying for education expenses, or starting a business.