Loan pricing refers to the process of determining the interest rate and fees associated with a loan. Lenders consider various factors, including the borrower's creditworthiness, the loan amount, and the term length. The goal is to set a price that compensates the lender for the risk of lending while remaining attractive to borrowers. The interest rate is a key component of loan pricing, as it affects the total cost of borrowing. Other elements, such as origination fees and closing costs, may also be included. Overall, effective loan pricing balances the lender's profitability with the borrower's ability to repay.