lending discrimination

Lending discrimination occurs when lenders treat applicants differently based on personal characteristics like race, gender, or ethnicity, rather than their ability to repay a loan. This can lead to unfair advantages for some and obstacles for others, making it harder for certain groups to access credit or receive favorable terms. Such discrimination undermines fairness in financial opportunities and can perpetuate economic inequalities, even if unintentionally. Laws aim to prevent this by promoting equal treatment and ensuring that decisions are based on relevant financial factors rather than personal biases.