Moneylending

Moneylending refers to the practice of providing loans to individuals or businesses, usually in exchange for interest, which is the cost of borrowing. Lenders, often banks or financial institutions, assess the borrower's ability to repay before issuing a loan. The loan amount, interest rate, and repayment terms vary based on factors like creditworthiness and purpose of the loan. Moneylending can facilitate major purchases, like homes or education, but can also lead to financial strain if borrowers cannot meet repayment obligations. Understanding the terms and implications of borrowing is crucial for responsible financial management.