Concept of a Bank
A lender is a lender which executes the deposit and function that is lending. a lender permits an individual with extra cash (Saver) to deposit their cash into the bank and earns a pastime price. Likewise, the financial institution lends to an individual who requires money (investor/borrower) at mortgage loan. Hence, the banking institutions work as an intermediary between your saver and also the debtor.
The lender often takes a deposit through the general general general public at a far lower rate known as deposit rate and lends the amount of money to your debtor at an increased rate of interest known as financing rate.