verb
- to lend more money or credit than is prudent or than a borrower can safely repay
Usage: transitive; finance/banking context
Examples
- Banks were criticized for overlending to subprime borrowers before the financial crisis.
- The lender decided not to overlend to the startup, despite pressure to increase loan volume.
- Regulators warned that overlending could destabilize the housing market.
- Financial institutions that overlend risk significant losses when borrowers default.
- The company's policy is to avoid overlending and maintain strict credit standards.