Hiteladó

Hiteladó is a Hungarian term that translates to "lender" or "creditor" in English. It refers to any individual, financial institution, or organization that provides a loan or credit to another party. The lender's primary role is to supply funds with the expectation of repayment, usually with interest, over a specified period.

In the context of financial transactions, a hiteladó can range from large commercial banks offering mortgages and business loans to smaller credit unions, peer-to-peer lending platforms, or even individuals who lend money to friends or family. The terms and conditions of the loan, including the interest rate, repayment schedule, and any collateral required, are established in a loan agreement between the hiteladó and the borrower (hitelfelvevő).

The motivation for a hiteladó to extend credit is typically to earn a return on their capital through the interest charged. They assess the risk associated with lending by evaluating the borrower's creditworthiness and the purpose of the loan. If the borrower defaults on their obligations, the hiteladó has legal recourse to recover the outstanding debt, which might involve seizing collateral or pursuing legal action. The concept of hiteladó is fundamental to the functioning of credit markets, enabling economic activity and investment by providing access to capital.