lends

Lends is the third-person singular present tense of the verb lend. To lend is to give something—such as money or an item—to another person for temporary use with the expectation that it will be returned. The lender remains the owner of the item or funds, and the borrower agrees to restore them under agreed terms.

In finance, lending is a core activity of banks, credit unions, microfinance institutions, and individuals. A loan contract specifies the principal, interest rate, repayment schedule, and terms of default. Loans can be secured by collateral or unsecured; rates may be fixed or variable. Lending involves assessing credit risk, capacity to repay, and sometimes the borrower's purpose. Interest compensates the lender for delaying consumption and for risk. In many jurisdictions, lending is subject to regulation intended to protect consumers, maintain stability, and prevent predatory practices.

Beyond money, lending can cover goods or services, such as lending equipment or books. In all cases, rights and responsibilities are outlined in an agreement; failure to comply can lead to penalties, civil remedies, or enforcement actions in secured cases.

Etymology: from Old English lendian or lend, related to the verb to lend; cognates appear in many Germanic languages.

See also: loan, borrower, lender, credit, collateral, usury, contract.