A borrower is a person or business that receives money from a lender with the agreement to pay it back within a specified period of time.
The loan structure, repayment terms and conditions of the loan reflect the nature of the borrower—whether the borrower is a sole proprietor (individual), a partnership (group of individuals), a corporation or a non-profit organization.
All terms of a loan must be met as agreed. In some cases, that includes deferring or forgiving part of the loan if certain conditions are met. These are called forgivable loans.
When all the repayment terms of a loan are met, the promissory note is retired. If loan payments are not made as agreed, the lender can use the legal system to recover its money.