Lending at less favorable terms in certain pre-designated geographic areas is a form of redlining.

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Redlining refers to the discriminatory practice where services (like banking, insurance, access to jobs, and even supermarkets) are withheld from potential customers who reside in neighborhoods classified as 'hazardous' to investment, often based on racial or ethnic composition, rather than individuals' qualifications or creditworthiness. Lending at less favorable terms in these areas is a manifestation of this practice, as it systematically disadvantages residents based on their location, which is often correlated with racial demographics.

Lending at Less Favorable Terms in Certain Pre-Designated Geographic Areas