LENDER Meaning and
Definition
-
A lender is an entity or individual who extends credit or provides funds to another party with the expectation that the borrowed amount will be repaid in the future. A lender can be a financial institution such as a bank, credit union, or online lending platform, or an individual such as a private investor. The lender typically requires the borrower to agree to certain terms and conditions, including the interest rate, repayment schedule, and collateral if applicable.
Lenders play a crucial role in facilitating borrowing and providing financial resources to individuals, businesses, and governments. They assess the creditworthiness of potential borrowers by evaluating their credit history, income level, and financial stability. Based on this assessment, the lender determines the amount of credit they are willing to extend and the terms under which it will be provided.
The lender's primary objective is to earn a profit by charging interest on the loan amount. The interest rate is determined by various factors such as market conditions, credit risk, and the type of loan. Borrowers are obligated to make regular repayments to the lender, which usually includes both principal and interest. Failure to repay the borrowed amount may result in penalties, legal consequences, or damage to the borrower's credit rating.
In summary, a lender is an individual or institution that lends money or extends credit to borrowers, with the expectation of receiving repayment along with an additional cost in the form of interest.
-
One who lends; one who makes it his business to put out money to interest.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for LENDER *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for LENDER
Etymology of LENDER
The word "lender" originated from Middle English "lendere", which can be further traced back to the Old English word "lǣendere". The Old English term is derived from the verb "lǣnan", meaning "to lend". This root verb "lǣnan" is closely related to the Old Norse word "lána" and the Gothic word "leihnan", both of which also mean "to lend". Ultimately, the origin can be linked to the Proto-Germanic word "*launijaną", which shares the same meaning.
Idioms with the word LENDER
-
Neither a borrower nor a lender be.
The idiom "Neither a borrower nor a lender be" is a famous quote from William Shakespeare's play Hamlet. It means that it is wise and advisable not to lend money to others or borrow money from others. It suggests that one should avoid both borrowing and lending as it can lead to complications, strain relationships, and create financial dependency. This phrase is often used to emphasize the importance of financial independence and self-sufficiency.
Similar spelling words for LENDER
- lend,
- leander,
- tender,
- Linder,
- Leandra,
- lander,
- Lenderman,
- fender,
- Landers,
- slender,
- leader,
- launder,
- sender,
- lindera,
- Le Notre,
- render,
- Leandro.
Infographic
Add the infographic to your website:
