What is the meaning of principal of the lender and borrower?

In the context of borrowing, principal is the initial size of a loan or a bond (the amount that must be repaid)

. If you have borrowed money, loan principal is the original amount of money you borrowed from a lender and must repay. The person who is borrowing money from a bank, money lender or financial institution is typically known as the ‘principal borrower’, meaning the person who has borrowed the ‘principal’ or main loan amount.