A lender is an individual or institution that provides funds to borrowers with the expectation of being repaid, usually with interest. Lenders can include banks, credit unions, and private individuals. They assess the creditworthiness of borrowers to determine the risk of lending money. Lenders play a crucial role in the economy by facilitating access to capital for various purposes, such as purchasing a home, financing a business, or covering personal expenses. The terms of the loan, including interest rates and repayment schedules, are typically outlined in a legal agreement between the lender and the borrower.