What is a Borrower?

A borrower is an individual or entity that is using money, assets, or services on credit. The concept most commonly applies to the lending of funds, where a borrower applies for a loan, and there is a credit evaluation by the lender. The lender may also require that the borrower provide collateral that the lender can access if the loan is not repaid in a timely manner. The borrower agrees to certain repayment terms and conditions as part of the loan agreement. When all repayment terms of the agreement have been fulfilled by the borrower, the underlying debt agreement is retired. If the borrower is unable to repay the loan, then the lender can pursue repayment through the legal system of the governing jurisdiction.