Borrowing money from either a lender or a bank means different things to different people.

One of the most common reasons people borrow money is because they want to purchase something that they are unable to pay cash for. A perfect example of this is a home loan or financing a vehicle. This allows an individual who has a steady income to make smaller payments over an extended period of time, without having to save up a large lump sum. This is both beneficial for the individual and the lender, as one receives an item upfront and is allowed to make affordable weekly/monthly payments, while the other receives interest on the money loaned.