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Borrower

Definition - What does Borrower mean?

A borrower is a person or a group who accepts funds from another party with the understanding that the funds must be repaid, typically with interest. Borrowers receive funds from lenders, who are commonly banks. People borrow money to pay for a wide variety of expenses.

Justipedia explains Borrower

Individuals and businesses often have a need to borrow funds. For example, an individual may need to borrow money to help pay for a house. A business may need to borrow money in order to pay for a project. Taking on debt can be a risk for many people. That is why lenders will often only approve people with enough income for many loans. Banks make a profit on loaning money by requiring that interest be paid on the debt. The interest rate for the loaned money depends on the type of loan and the individual lender.

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