A lender is a person, financial institution, or organization that provides funds to borrowers with the expectation of repayment, typically with interest. Lenders include banks, credit unions, online loan providers, and private lenders. They assess the borrower’s creditworthiness before issuing loans, often by evaluating their credit score, income, and financial history. By extending credit, lenders help individuals and businesses finance large purchases, investments, or personal needs. In return, they earn profits from interest on the loan, making lending a core part of the financial system.