From Longman Business Dictionaryoverlendo‧ver‧lend /ˌəʊvəˈlendˌoʊvər-/ verb (past tense and past participle overlent /-ˈlent/) [intransitive] BANKINGFINANCEif a financial institution overlends, it lends more than it should, for example to borrowers that are unable to make repayments —overlending noun [uncountable]Overlending has increased the bank’s risk exposure.