Borrower (Loan Recipient)

An individual or legal entity that receives money, goods, or services on loan from a private individual or organization, not necessarily through a licensed financial institution (lender), with an obligation to return them within a specified period and under agreed conditions, usually in exchange for interest. The borrower is required to comply with the terms of the agreement, repaying both principal and interest, and in some cases the loan may be secured with property or other guarantees.