What does it mean to be a borrower?

You’ll see the term “borrower” used when buying a new home, financing a car, or obtaining a business loan. Read on to learn about the meaning of borrower, examples, and how it differs from a lender. A borrower is a person or entity that has been given money that must be repaid in the future.

What is a borrowers loan?

Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia . A person or company that has received money from another party with the agreement that the money will be repaid. Most borrowers borrow at interest, meaning they pay a certain percentage of the principal amount to the lender as compensation for borrowing.

What is a borrower in banking?

Borrowers are the backbone of banks as they earn through interest accrued on debtor’s accounts. The borrower is any business entity or person who seeks the help of financial institutions called lenders to borrow the desired funds for investment or personal use.