An institutional lender is a financial institution or organization that provides loans or financing to individuals, businesses, or other entities. These lenders are typically large, regulated entities, such as banks, credit unions, mortgage companies, insurance companies, or pension funds. Institutional lenders are distinguished from private or individual lenders because they operate on a larger scale and are subject to stricter regulatory oversight.
In the context of real estate, institutional lenders are often the source of mortgage loans, providing financing for the purchase, development, or refinancing of properties. Because of their size and regulatory framework, they often offer a wide range of loan products, competitive interest rates, and more robust customer service infrastructures compared to private lenders.