Lender - Financial definition
Concise definition of the term lender
A lender is an entity or individual that provides funds to another party with the expectation of repayment, typically with interest.
Comprehensive definition of the term lender
In finance, a lender acts as a crucial intermediary, supplying capital to borrowers in various forms such as loans, mortgages, or credit lines. They play a pivotal role in facilitating economic activities by evaluating creditworthiness, setting terms, and managing risk. Lenders can range from traditional banks and financial institutions to peer-to-peer lending platforms, each adhering to regulatory frameworks and market dynamics while striving to balance profit objectives with prudent lending practices.