What is Conditional Loan Approval?

Posted by in Loans | Updated on August 26, 2022

If you have applied for an international student loan and are waiting for approval, you may have received a notice to say that your loan has been conditionally approved. This causes a lot of people to be confused and unsure whether or not they have gotten their loan. It’s a stressful time for people: the difference between getting approved and rejected can literally be life-changing.

In this article, we will try to put your mind at ease by explaining exactly what a conditional approval loan means.

What is a Conditional Approval Loan?

A conditional approval is the first level of approval from your loan provider. It means that your application has successfully gone through the first screening process.

The fact that it has been conditionally approved means that there was nothing that raised any alarms during the initial process and the lender has found no reason to turn you down yet. Things that are looked at during the first screening phase include your credit history, your personal debt, and your income. As your application moves on to the next phase, it will be looked at in more detail. Getting a conditional approval is definitely good news but you should not start to celebrate just yet.

How will I know if I’m actually approved?

Your loan provider will usually be quite clear when it comes to letting you know if your loan has been approved. In the case of an approved loan, you will most likely be phoned by your loan officer or someone else within the bank. If you have received a letter that says your loan has been approved, check and see if it states that your approval depends on any other condition being met, or terms being followed. If this is the case, your loan is still only conditionally approved.

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What can I do?

If you have been conditionally approved, you may be required to meet certain conditions to have your loan approved. The bank may ask you for some further verification. This could be to do with tax returns, income, or banking, and you will be asked to produce more documentation to back up your application. You may also be asked to meet certain collateral requirements. This could be related to a car or a house, which the loan provider may want to use as an insurance policy against your loan.

Your loan will not get approval until you have met all of the requirements your loan provider has requested. They could also close your application if you have not responded to their requests in a timely manner. Our advice is that you supply all of the relevant documentation and meet all of the requirements as quickly as possible. In some cases, the loan provider’s requests may not appeal to you, a conditional approval is not a contract and you are still entitled to withdraw your application at this stage if you feel the terms are unfair.

Have you had any experience with conditionally approved loans? Do you have any advice that someone who has had a loan conditionally approved may find useful? Let us know in our comments section.

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If you are considering applying for a personal loan, just follow these 3 simple steps.


Apply online for the loan amount you need. Submit the required documentation and provide your best possible application. Stronger applications get better loan offers.


If your application meets the eligibility criteria, the lender will contact you with regard to your application. Provide any additional information if required. Soon you’ll have your loan offer. Some lenders send a promissory note with your loan offer. Sign and return that note if you wish to accept the loan offer.


The loan then gets disbursed into your U.S. bank account within a reasonable number of days (some lenders will be as quick as 2-3 business days). Now you need to set up your repayment method. You can choose an autopay method online to help you pay on time every month.


About Stilt

Stilt provides loans to international students and working professionals in the U.S. (F-1, OPT, H-1B, O-1, L-1, TN visa holders) at rates lower than any other lender. Stilt is committed to helping immigrants build a better financial future.

We take a holistic underwriting approach to determine your interest rates and make sure you get the lowest rate possible. 

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