Who is defined as the party that borrows money?

The party that is defined as borrowing money is the debtor. This term specifically refers to an individual or entity that has received funds from another party, with the promise to repay the borrowed amount, usually with interest, over time. In financial transactions, the debtor is often contrasted with the creditor, who is the party that lends the money. Understanding this distinction is crucial in finance and business, as it lays the foundation for concepts related to loans, credit, and financial obligations. The debtor's responsibility is to meet the repayment terms agreed upon, which may include scheduled payments as laid out in a loan agreement or credit terms.