loan-approval

Vocabulary Word

Definition

'Loan approval' is when a bank or other lender agrees you can borrow a particular amount of money. It's a big step when you're trying to buy something expensive, like a house or a car.

Examples in Different Contexts

In banking, 'loan approval' is the process by which a bank or lender decides to grant a loan based on the borrower's creditworthiness and other factors. A bank manager might say, 'Once your loan approval goes through, the funds will be disbursed to your account.'

Practice Scenarios

Business

Scenario:

We're seeking investment options for our business expansion. A substantial fund can significantly fuel our growth strategy.

Response:

Securing a sizeable loan approval could certainly assist us in scaling up our operation.

Tech

Scenario:

We must ensure that our app's credit scoring algorithm is accurate and unbiased. Getting it wrong could severely impact our customer's financial situation.

Response:

A well-engineered loan approval process should yield accurate outcomes and maintain borrower trust.