A borrower is a person or entity that takes money or property from another party, known as the lender, with the promise to return it later. This often happens when someone needs funds for a big purchase, like a house or a car. In these cases, the borrower usually signs a contract that outlines the terms of the loan, including how much they will pay back and when. In many situations, borrowers may seek help from financial institutions, such as banks or credit unions, to secure loans. They must demonstrate their ability to repay the loan, often by providing information about their income and credit history. This process helps lenders assess the risk of lending money to the borrower.