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Simple English definitions for legal terms
lender
Read a random definition: UPUFA
A quick definition of lender:
A lender is someone who gives money to someone else, like a bank or a person. The person who gets the money has to pay it back with extra money called interest. The lender looks at how good the person is at paying back money by checking their credit score. The better the score, the less extra money they have to pay back.
A more thorough explanation:
A lender is a person or organization that provides money to someone else in exchange for repayment with interest. This can be a bank, credit union, or other financial institution.
- A bank that gives a mortgage loan to someone buying a house is a lender.
- A credit card company that allows someone to borrow money to make purchases is a lender.
- A friend who loans money to another friend is also a lender.
These examples illustrate how a lender provides money to someone else with the expectation that it will be paid back with interest. The lender evaluates the borrower's ability to repay the loan, including their credit history and credit score. The higher the borrower's credit score, the more likely they are to receive a lower interest rate from the lender.