DEFINITION of 'Lender'

Someone who makes funds available to another with the expectation that the funds will be repaid, plus any interest and/or fees. A lender can be an individual, or a public or private group. Lenders may provide funds for a variety of reasons, such as a mortgage, automobile loan or small business loan.


A lender provides cash or credit to a borrower that needs to be repaid either in increments (as in a monthly mortgage payment) or as a lump sum (as in a promotional "buy now pay later" arrangement). The terms of the loan will specify how the loan is to be satisfied, over what period of time, and state the consequences of default.

  1. Interest

    The charge for the privilege of borrowing money, typically expressed ...
  2. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  3. Creditor

    An entity (person or institution) that extends credit by giving ...
  4. Loan

    The act of giving money, property or other material goods to ...
  5. Collection Agency

    A company hired by lenders to recover funds that are past due ...
  6. Encumbrance

    A claim against a property by a party that is not the owner. ...
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