loan
LOHN
/loʊn/
Noun: A thing that is borrowed, especially a sum of money that is expected to be paid back with interest. Verb: To lend (money or an item) to someone.
As a noun, 'loan' is the specific item or amount of money. As a verb, 'loan' is often used interchangeably with 'lend,' though 'lend' is generally preferred in British English for the verb form.
The story behind the word. The word 'loan' comes from the Old English 'lǣn,' meaning 'a grant, gift, or thing lent.' This noun is related to the Old English verb 'lǣnan,' meaning 'to lend.' While 'lend' has remained the primary verb, 'loan' began to be used as a verb in American English in the 19th century, though 'lend' is still more common for the verb form in British English.
Word relationships
- advance: Often a smaller, short-term loan, or a payment made before it is due.
- credit: The ability to obtain goods or services before payment, based on trust that payment will be made in the future.
- gift: Something given without expectation of return.
- repayment: The act of paying back a loan.
Commonly confused with
- debt: A 'loan' is the money provided; 'debt' is the obligation to repay it.
Word family
- loanee (noun): A person to whom something is lent.
- loaner (noun): An item lent for temporary use, or a person who lends.
Collocations
- take out a loan
- personal loan
- car loan
- mortgage loan
- student loan
- repay a loan
Idioms & expressions
- on loan (temporarily borrowed)
Example sentences
- "She took out a student loan to cover her tuition fees and living expenses." Applying for financial aid.
- "The bank refused to loan him the money without sufficient collateral." A bank's lending policy.
- "The government approved a substantial loan package to support struggling small businesses." From a news report.
Memory hook
A 'loan' is like a 'lone' amount of money that temporarily leaves your possession. Lone money
When not to use
Do not use 'loan' as a verb when referring to giving something permanently; it implies temporary use and expected return.
Fun facts
- The verb 'loan' is more common in American English, while 'lend' is generally preferred for the verb form in British English.
- The concept of a loan is as old as civilization, with evidence of lending practices dating back to ancient Mesopotamia.
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