What is redlining?

Redlining refers to the discriminatory practice where lenders refuse to provide loans or insurance to individuals in specific geographic areas, often based on racial or ethnic demographics. This practice has historically targeted minority neighborhoods, leading to systemic disinvestment in those areas and limiting access to necessary financial resources for home buying or improvements.

The significance of redlining lies in its long-term impact on communities, as it contributes to economic disparities and reinforces segregation. By denying access to credit and financing based on location, it perpetuates cycles of poverty and prevents residents from achieving homeownership and financial stability.

Your recognition of redlining as the refusal to lend in certain areas accurately captures its essence, highlighting the discriminatory nature of the practice and its implications for affected communities.