Payment Protection Insurance refers to an insurance policy that will provide a certain income for a period of time in the event of sickness, accident or redundancy. The policy can cover just one, or both the first and second wage earners. Cover may also be available for self-employed borrowers.

A set of criteria used to initially judge a potential customer ability to pay back a loan. The pre-qualification will gather various data relating to a customer’s financial situation; for instance, a credit score.

The decision made at the pre-qualification stage does not guarantee the customer a product, but precedes them to the next stage where the final decision will be made