Lending institutions are financial organizations that provide loans to individuals and businesses. They include banks, credit unions, and mortgage companies, which assess the creditworthiness of borrowers before approving loans. These institutions earn money through interest on the loans they issue. In addition to personal loans, lending institutions may offer various financial products, such as credit cards, auto loans, and business loans. They play a crucial role in the economy by facilitating access to funds, helping people make significant purchases, and supporting business growth.