Discrimination in Lending

Discrimination in lending occurs when financial institutions treat applicants unfairly based on personal characteristics like race, gender, age, or religion, rather than their ability to repay a loan. This means that qualified individuals might be denied loans or offered less favorable terms solely because of who they are, rather than their financial situation. Such practices are illegal and undermine fairness in the lending process, preventing deserving borrowers from accessing credit based on merit. Ensuring non-discriminatory lending helps promote equal opportunities and a more just financial system.