Borrower

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Borrower

A person or company that has received money from another party with the agreement that the money will be repaid. Most borrowers borrow at interest, meaning they pay a certain percentage of the principal amount to the lender as compensation for borrowing. Most loans also have a maturity date by which time the borrower must have repaid the loan. Borrowing and lending occur informally between family and friends, at the retail level through banks and on a large scale through governments and institutional investors.

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Borrower