Borrower: refers to an enterprise, institution or individual that borrows monetary funds from a lender by using its own credit or property as a guarantee in credit activities, or by using a third party as a guarantee.

Lender: In a loan contract or a borrowing contract, currency or physical objects are delivered to the borrower for possession or use, and the currency or physical objects of the same type, quantity, and quality are recovered regularly or irregularly according to the agreement. or the party who retrieves the original thing.

Both loan contracts and borrowing contracts are unilateral contracts. After the subject matter is delivered to the borrower, the lender generally no longer bears legal obligations. However, if the subject matter is defective, the lender will be liable. Duty to disclose, when the lender intentionally conceals the information and causes the borrower to suffer losses, the lender shall bear civil liability to compensate for the losses.

The lender also has the obligation to allow the borrower to use the loaned thing, and has the obligation to transfer the ownership or use right of the loaned thing. The lender has the right to request the return of the borrowed thing to the borrower, or the right to return the thing of the same type, quality, and quantity; in a paid loan, the lender also has the right to ask for interest or other compensation.

Extended information:

For the first time, a person-to-person (P2P) online credit service platform appeared. Because this model brings mutual benefits to both borrowers and lenders, coupled with its efficient and convenient operation methods and personalized interest rate pricing mechanism, it has received widespread recognition and attention after its launch and was quickly replicated in other countries.

P2P microfinance is a business model that aggregates very small loans and lends them to people in need of funds. Its social value is mainly reflected in three aspects: meeting personal capital needs, developing personal credit systems and improving the utilization rate of social idle funds:

1) In China, banks have very high requirements for personal credit loans. Individuals face many difficulties in financing from the banking system, and P2P small loans provide new financing channels for people in need of funds.

2) P2P small loans are mainly loans based on personal credit evaluation. Its development helps individuals reflect their own credit value and improve the construction of social personal credit system.

3) P2P small loans expand the channels for personal investment, increase the flow of funds, increase the utilization rate of idle funds in society, and promote economic development.

The emergence of the P2P online lending platform is not only an innovative business model, it has also made a significant contribution to narrowing the gap between the rich and the poor, creating jobs, achieving long-term economic development, and social harmony.

Reference materials: Baidu Encyclopedia - Borrower Baidu Encyclopedia - Lender