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Lending refers to the act of providing financial assistance to someone through borrowing. It typically involves a lender who provides money to a borrower, who agrees to pay back the loan over a set period of time with interest.
Lending can take many forms, including personal loans, mortgages, and business loans.
The lender typically conducts an evaluation of the borrower's creditworthiness, including their credit score and financial history, to determine the level of risk involved in the transaction.
From there, the lender will establish the appropriate terms of the loan, such as the amount, interest rate, and repayment schedule. Once the borrower accepts the terms and signs a contract with the lender, the lending process is underway.