Who are the parties in a transaction involving payment of interest?

In a transaction involving the payment of interest, the primary parties are the borrower and the lender. The borrower is the entity or individual who receives funds and agrees to pay back the principal amount along with interest. The lender, often a financial institution or an individual, provides the funds and earns interest as compensation for the risk and opportunity cost involved in lending. Additionally, there may be intermediaries, such as brokers or financial institutions, that facilitate the transaction.