The Key Difference Between Borrowing and Lending

borrowing vs lending
Feature	Borrowing	Lending
Definition	Obtaining money or assets from another party with a promise to repay.	Providing money or assets to another party expecting repayment.
Role	Borrower who receives funds for personal or business use.	Lender who supplies funds or assets for use by borrower.
Obligation	Must repay the borrowed amount, often with interest, within agreed terms.	Has the right to receive repayment plus any agreed interest.
Risk	Risk of debt burden and repayment challenges.	Risk of default or non-repayment by borrower.
Purpose	To finance consumption, investment, or emergency needs.	To earn interest income or support others financially.
Examples	Taking a personal loan, mortgage, or credit card debt.	Bank providing loans, peer-to-peer lending, or issuing bonds.