A lender is an individual or organization that provides funds to borrowers with the expectation of being repaid, usually with interest. Lenders can include banks, credit unions, and private individuals. They assess the borrower's creditworthiness to determine the risk of lending money. Lenders play a crucial role in the financial system by facilitating access to capital for various purposes, such as purchasing a home or funding a business. The terms of the loan, including interest rates and repayment schedules, are typically outlined in a legal agreement between the lender and the borrower.