Are banks and lenders required to offer the same interest rates for all borrowers?

Banks and lenders are not required to offer the same interest rates to all borrowers because loan pricing is influenced by various factors, including the borrower's creditworthiness, income level, debt-to-income ratio, and the type of loan being applied for. Each borrower's risk profile is assessed, and different rates may be offered based on how likely they are to repay the loan.

Additionally, competition in the lending market allows institutions to set their own rates, which can vary widely between lenders and is also subject to economic factors such as inflation and central bank policies. Personal circumstances and economic conditions dictate the terms of loans, leading to different interest rates for different borrowers.

This variability reflects the principle of risk-based pricing, where higher-risk borrowers might face higher interest rates compared to lower-risk borrowers, allowing lenders to manage their risk exposure effectively.