Lenders are individuals or institutions that provide money to borrowers with the expectation of being repaid, usually with interest. They can include banks, credit unions, and private companies. Lenders play a crucial role in the economy by helping people and businesses access funds for various needs, such as buying a home or starting a business. When someone wants to borrow money, they typically apply for a loan from a lender. The lender evaluates the borrower's creditworthiness, which is often determined by their credit score and financial history. This process helps ensure that the lender can recover the money lent, making it a vital part of financial transactions.