Private lenders refer to individuals or organizations that provide loans for real estate investments, business purposes, or personal needs without involving any traditional financial institutions such as banks. These lenders can be wealthy individuals, private equity firms, hedge funds, or other non-bank entities that offer financing in exchange for interest rates and fees. Private lending is often used when borrowers are unable to secure loans from conventional sources due to credit issues, lack of collateral, or other reasons. The terms and conditions of private loans can vary widely depending on the lender's criteria, but they generally offer more flexible underwriting standards than traditional bank loans.