Lending
The activity of lending money to people and organizations which they pay back with interest: lending to sb Lending to borrowers with lower credit scores increased sharply during 2005-6. Increase, cut, and raise lending In the first half of the year, the Bank increased its lending by almost 50%. Lending rises/increases/falls UK mortgage lending fell by a record £2.3bn in April. Equity prices have been hit sharply by the US subprime lending crisis. Business, consumer, corporate lending bank, commercial, subprime lending, lending company, institution, market, lending practices, figures, growth[Cambridge Dictionary]. Lending typically means imposing unfair, deceptive, or abusive loan terms on borrowers. In many cases, these loans carry high fees and interest rates, strip the borrower of equity, or place a creditworthy borrower in a lower credit-rated (and more expensive) loan, all to the lender's benefit. Predatory lenders often use aggressive sales tactics and exploit borrowers’ lack of understanding of financial transactions. Through deceptive or fraudulent actions and a lack of transparency, they entice, induce, and assist a borrower in taking out a loan they will not reasonably be able to pay back(Investopedia). Predatory lending is any lending practice that imposes unfair and abusive loan terms on borrowers. Some aspects of predatory lending include high-interest rates, high fees, and terms that strip the borrower of equity. The economic impact of COVID-19 gave way for cash-strapped consumers to become vulnerable to predatory loans. Predatory lending disproportionately affects women, Black, and Latinx communities. Predatory lending often occurs in conjunction with home mortgages[Investopedia].
Lending. Cambridge Dictionary. Retrieved from: https://dictionary.cambridge.org/dictionary/english/lending
Academic explanatory dictionary. Retrieved from: https://www.investopedia.com/terms/p/predatory_lending.asp