Borrower

In finance, the term borrower denotes a person or another entity which borrows money from a lender or obtains goods and services from another entity on credit. Typically (but not in every case) borrowers pay interest for loans. Interest is a fee which a lender charges in exchange for their service of providing the loan.

When a person gets a personal loan from a bank or other lender, that person is the borrower. When a person uses a credit card to pay for a purchase, they are borrowing money from a credit card issuer, and are therefore a borrower. A company or government which issues a bond is a borrower because it is borrowing money from investors who buy its bond. A mortgagor is a borrower because they borrow money from a lender (a mortgagee) using their property as collateral.

More on this topic:
Swiss personal loan comparison

About moneyland.ch

moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 80 unbiased comparison tools and calculators are available on moneyland.ch, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.