Creditor – Meaning and Definition

Creditor refers to the individual that has to take some benefit or sum of amount from another person or group of persons.

A Creditor can be a person, government agency, or any institution that has to take goods/services or sum of amount from another entity (Debtor).

As per above diagram, “Y“ has to take sum of amount from “X”. Therefore “Y” is creditor of “X”.

Author: Vikas Yadav

Vikas Yadav founded MonetarySection.com in 2014 and is responsible for everything published on it. He holds an MBA from NCU (formerly ITM), Gurugram, and writes about accounting, payroll and personal finance for Indian readers. Facts and figures are checked against official sources such as the Income Tax Department, RBI and IRDAI. View all posts by Vikas Yadav