Lending practices refer to the methods and policies that financial institutions, such as banks and credit unions, use to provide loans to individuals and businesses. These practices include assessing a borrower's creditworthiness, determining loan terms, and setting interest rates. Lenders often evaluate factors like income, credit history, and debt-to-income ratio to decide whether to approve a loan application. Different types of loans, such as mortgages, personal loans, and business loans, have specific lending practices tailored to their purposes. Regulations and guidelines, often set by government agencies, help ensure fair lending and protect consumers from discriminatory practices.