Lenders and Borrowers

Lenders
 A lender is a person, a governmental or private organization, or a financial institution
who lends money to a person or a company with the expectation of repayment.
Payment of any interest or fees will be included in the repayment. Repayment can be
made in installments, such as a monthly mortgage payment (a mortgage is one of the
largest loans taken out by consumers), or in one lump amount.
 The money lender is taking a chance that the borrower may default on the loan. As a
result, interest serves as a form of compensation for taking on risk. The risk of default is
accompanied with the risk of inflation. When you lend money today, the price of
products and services may rise by the time you are repaid, reducing the buying power of
your money. As a result, interest protects against future inflation increases. Interest is
also used by a lender, such as a bank, to handle account fees.

Example:

Lenders are creditors, but not all creditors are lenders. For example, utility
companies, health clubs, phone companies and credit card issuers can all be
creditors if you have contracts with them or if they have performed services for which
you have not yet paid. Some lenders are more senior than others.

Borrowers
 A borrower is a person or company who uses credit to obtain money, assets, or services.
The idea is most often used in the lending of cash, when a borrower asks for a loan and
the lender assesses his or her creditworthiness. The borrower may also be required to
submit collateral that the lender can seize if the loan is not paid back on time. As part of
the loan arrangement, the borrower agrees to specific repayment terms and conditions.
 Borrowers pay interest because it is a cost of getting the capacity to spend now rather
than waiting years to build up enough money. On example, an individual or family may
get a mortgage for a property that they are unable to pay in full right now, but which
permits them to become homeowners sooner rather than later.

Example:

For example, the Germanic tribes in the first few centuries A.D. adopted numerous loanwords
from Latin as they adopted new products via trade with the Romans. Few Germanic words, on
the other hand, passed into Latin. The actual process of borrowing is complex and involves
many usage events (i.e. instances of use of the new word). Generally, some speakers of the
borrowing language know the source language too, or at least enough of it to utilize the
relevant word. They (often consciously) adopt the new word when speaking the borrowing
language, because it most exactly fits the idea they are trying to express. If they are bilingual in
the source language, which is often the case, they might pronounce the words the same or
similar to the way they are pronounced in the source language. For example, English speakers
adopted the word garage from French, at first with a pronunciation nearer to the French
pronunciation than is now usually found. Presumably the very first speakers who used the word
in English knew at least some French and heard the word used by French speakers, in a French-
speaking context.