What is a lender?

A lender is the person who gives money to another as a loan. He loan It is a contract by which an individual is obliged to return the money that has been loaned by another person.

For this operation, the lender takes compensation or interest together with the return of the total capital loaned. It is important to know that the lender is the person who leaves the money, compared to the concept of borrower who is the one who receives the money.

The latter is important, since in the event that they are not charged interests for the loan or money that is transferred, it could be denominated as something else (for example a donation).


We can divide the lenders into 3 different groups:

Bank lenders

They are financial entities (including banks) that offer a product or service through financing and obviously charging interest for it. In the past, it was the most viable and common option, although today this is not the case, as there are more common alternatives.

Non-bank lenders

It is the type of lender contrary to the bank lender, being a competitor of these. They are those people who lend their money to other people in exchange for compensation (interest).

They usually do so through participatory financing platforms, such as those of crowdlending o crowdfunding. This is thanks to the new technologies that have emerged, which have allowed a more globalized world in which we can find people or projects more comparable to our needs.

Individual Lenders

They are those that offer a loan to companies or individuals, for which they usually request a loan for it and ensure the repayment of the money borrowed in the future.

However, you have to be careful with these lenders, and do the process with legal procedures involved, as there may be the case of scam or fraud in some cases.

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