loan

noun
\ ˈlōn How to pronounce loan (audio) \

Definition of loan

 (Entry 1 of 2)

1a : money lent at interest took out a loan to pay for the new car
b : something lent usually for the borrower's temporary use
2a : the grant of temporary use Can I have the loan of your car?
b : the temporary duty of a person transferred to another job for a limited time He had been on loan to the navy during the war.
3 : loanword The word "nosh" is a loan from Yiddish.

loan

verb
loaned; loaning; loans

Definition of loan (Entry 2 of 2)

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Other Words from loan

Verb

loanable \ ˈlō-​nə-​bəl How to pronounce loanable (audio) \ adjective

Synonyms & Antonyms for loan

Synonyms: Verb

Antonyms: Verb

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Loan vs. Lend: Usage Guide

Verb

The verb loan is one of the words English settlers brought to America and continued to use after it had died out in Britain. Its use was soon noticed by British visitors and somewhat later by the New England literati, who considered it a bit provincial. It was flatly declared wrong in 1870 by a popular commentator, who based his objection on etymology. A later scholar showed that the commentator was ignorant of Old English and thus unsound in his objection, but by then it was too late, as the condemnation had been picked up by many other commentators. Although a surprising number of critics still voice objections, loan is entirely standard as a verb. You should note that it is used only literally; lend is the verb used for figurative expressions, such as "lending a hand" or "lending enchantment."

Examples of loan in a Sentence

Noun He got a car loan. He'll need several more years to pay off the rest of the loan. She needed money, so she asked her friend for a loan. Verb The National Gallery has been kind enough to loan this painting to our museum. His mother loaned him the money to buy a new car. Can you loan me $20?
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Recent Examples on the Web: Noun During the initial window for loan applications in May, Bay Area charter schools received funds from the program in amounts ranging from a few hundred thousand to several million dollars. Tal Kopan, SFChronicle.com, "Bay Area charter schools tap tens of millions in federal small business loans," 28 June 2020 On Sunday, Arsenal needed a goal in second-half injury time from on-loan midfielder Dani Ceballos to advance in Sheffield. Ravi Ubha, CNN, "FA Cup: Manchester City, Chelsea, Manchester United, Arsenal reach semifinals," 28 June 2020 The toll has forced the Egyptian government to turn once again to the International Monetary Fund, which on Friday agreed to the country’s request for a $5.2 billion loan. Jared Malsin, WSJ, "Pandemic’s Economic Toll Forces Egypt to Turn Again to IMF for Help," 26 June 2020 One-third of local businesses that applied for a PPP loan did not receive funding, according to city data. Diego Mendoza-moyers, ExpressNews.com, "City to offer $27 million in coronavirus grants for small businesses," 25 June 2020 Morgan eventually received an EIDL advance and approval for a PPP loan. Lacrai Mitchell, CBS News, "Black North Carolina business owners adapt to financial uncertainty amid pandemic," 25 June 2020 However, loan amounts would only be disclosed in ranges, up to the $10 million cap. Anne Sraders, Fortune, "PPP loan fraud a ‘significant’ risk, says government watchdog," 25 June 2020 The Townsends applied for a loan from the federal small business Paycheck Protection Program but didn't receive any funds. Chris Sims, The Indianapolis Star, "Roscoe's Tacos was going to close. Here's how Greenwood helped change the owners' mind.," 24 June 2020 But that didn’t stop Fahad H. Shah from using the company to apply for a $1.6 million federal Paycheck Protection Program loan, prosecutors say. Kevin Krause, Dallas News, "Feds say Murphy man lied about having a business to pocket a $1.6 million Paycheck Protection loan," 23 June 2020 Recent Examples on the Web: Verb The governor could also loan that money to the state's general fund and use it for basic operating expenses, though the money would need to be repaid by the end of this calendar year unless Congress says otherwise. Andrew Oxford, azcentral, "Arizona budget picture not as dire as projected; cuts to services may be avoided for now," 19 June 2020 Do not loan money without a plan to handle your family borrower’s default, divorce or death. Dallas News, "Amateur hour: Loans to family members can be complicated," 7 June 2020 Try to ignore the impulse to buy something new, dip into savings or to loan someone money. Magi Helena, oregonlive, "Horoscope for June 6, 2020: Gemini, lessen your stress; Scorpio, pull out the tact and diplomacy," 6 June 2020 The pause benefits the fight against the coronavirus: Approximately 3,700 WHO employees, consultants, and lab personnel who staff the polio campaign in 55 countries have been loaned to the Covid-19 effort, according to Zaffran. Maryn Mckenna, Wired, "Polio Is Nearly Wiped Out. Covid-19 Could Halt That Progress," 21 May 2020 Banks so far have loaned just 1.1 billion pounds ($1.4 billion) under the Coronavirus Business Interruption Loan Scheme. David Goodman, Bloomberg.com, "BOE’s Bailey Says Banks Need to Get On With Loans to Firms," 13 May 2020 To date, the CH-UH district has loaned out more than 1,400 Chromebooks for its students. Thomas Jewell, cleveland, "Heights High graduation could commence before proposed midsummer prom: CH-UH Schools pandemic update," 23 Apr. 2020 To date, 158 laptops have been loaned to students who could come to campus, and the university’s Student Tech Fund opened applications this week for students who live farther away and need money to buy their own, Robinson said. Alia Malik, ExpressNews.com, "San Antonio universities, colleges getting millions in federal coronavirus relief," 16 Apr. 2020 Another company, meanwhile, has loaned them a van and the help of a driver for the deliveries, and a local baker is baking some 700 sourdough buns. Mary Holland, Condé Nast Traveler, "A Michelin-Starred Restaurant in Copenhagen Is Feeding the Homeless During the Coronavirus Outbreak," 30 Mar. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'loan.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of loan

Noun

12th century, in the meaning defined at sense 1a

Verb

circa 1543, in the meaning defined above

History and Etymology for loan

Noun

Middle English lone "something lent or owing, divine gift," borrowed from Old Norse lán "something lent, fief," going back to Germanic *laihna- "something granted or lent" (whence also Old Frisian lēn "fief, benefice, something lent," Old Saxon lēhan "gift, fief," Old High German lēhan, lēn "something lent, feudal tenure, benefice," and, from a variant *laihni-, Old English lǣn "something lent, grant, gift"), noun derivative from the verb *līhwan- "to grant, lend" — more at delinquent entry 2

Note: Germanic *laihna- appears directly comparable with the Indo-Iranian s-stem represented by Vedic Sanskrit rékṇaḥ "inheritance, property," Avestan raēxənah- "inheritance," though it is uncertain if the Germanic word can also be derived from an s-stem. See note at delinquent entry 2.

Verb

derivative of loan entry 1

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Time Traveler for loan

Time Traveler

The first known use of loan was in the 12th century

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Statistics for loan

Last Updated

1 Jul 2020

Cite this Entry

“Loan.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/loan. Accessed 7 Jul. 2020.

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More Definitions for loan

loan

noun

Financial Definition of loan

What It Is

In the business world, a loan is an amount borrowed.

How It Works

Let's assume Company XYZ has invented a new product that will revolutionize the widget market. The company is sure there will be demand from billions of people around the world, and therefore it needs to build a new factory. If Company XYZ's funds for constructing the factory were limited to its cash on hand, say $200,000, it certainly could not build the kind of factory it needs to capitalize on this tremendous opportunity and would thus be very limited in its output and profits (and would leave the market wide open for competitors to fill the void). With a loan, however, Company XYZ could build the factory and take advantage of the profit potential of its product. The debt essentially magnifies the profits.

In the business world, bank loans and corporate or government bonds are the most common. For individuals, loans can be personal loans, mortgages or lines of credit.

Why It Matters

A loan is a liability, meaning the lender has a claim on a company’s assets. Loan payments due within one year are generally classified as short-term debt on a company’s balance sheet. Loan payments due in more than one year are considered long-term debt. It is important to note that loans commonly come to mind when one considers liabilities, but not all liabilities are loans. Companies may incur other types of liabilities, including (but not limited to) upcoming payroll, bonuses, legal settlements, payments to vendors, certain derivatives, contracts, certain types of leases, and required stock redemptions. Common balance sheet categories for liabilities include accounts payable, accrued expenses, and debt.

Information about a company’s debt is a key component of accurate financial reporting and a crucial part of thorough financial analysis. Excessive debt can ruin a company but is not always detrimental. The use of debt financing can magnify profits that would have otherwise gone unrealized.

Source: Investing Answers

term loan

noun

Financial Definition of term loan

What It Is

A term loan has a set maturity date and usually has a fixed interest rate.

How It Works

Let's say Company XYZ wants to borrow $1 million to build a factory. It meets with its bank, ABC Bank, to negotiate the loan. The company and the bank agree to a 10-year loan with quarterly payments and a 7% interest rate.

Term loans often mature within 10 years, but this is negotiable. They usually require collateral. Not all banks make term loans, and an existing relationship with a bank is usually helpful.

Why It Matters

Term loans are very common, and they provide a level of certainty to the borrower and the lender. The borrower usually has access to the full amount of principal upfront, knows when to make payments, and knows how much to pay. The lender knows that the principal will be repaid over time on a regular basis.

Source: Investing Answers

loan

noun
How to pronounce loan (audio)

English Language Learners Definition of loan

 (Entry 1 of 2)

: an amount of money that is given to someone for a period of time with a promise that it will be paid back : an amount of money that is borrowed
somewhat formal : permission to use something for a period of time

loan

verb

English Language Learners Definition of loan (Entry 2 of 2)

: to give (something) to (someone) for a period of time
chiefly US : to give (money) to (someone) who agrees to pay it back in the future

loan

noun
\ ˈlōn How to pronounce loan (audio) \

Kids Definition of loan

 (Entry 1 of 2)

1 : money given with the understanding that it will be paid back
2 : something given for a time to a borrower That's not mine, it's a loan.
3 : permission to use something for a time May I have the loan of your car?

loan

verb
loaned; loaning

Kids Definition of loan (Entry 2 of 2)

: to give to another for temporary use with the understanding that the same or a like thing will be returned loan a book loan money

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loan

noun

Legal Definition of loan

1a : money lent at interest
b : something lent usually for the borrower's temporary use
2 : a transfer or delivery of money from one party to another with the express or implied agreement that the sum will be repaid regardless of contingency and usually with interest broadly : the furnishing of something to another party for temporary use with the agreement that it or its equivalent will be returned the leasing of the car was termed a loan
bridge loan
: a short-term loan used as a means of financing a purchase or enterprise prior to obtaining other funds used a bridge loan to purchase a new home prior to the sale of the old one
conventional loan
: a loan for the purchase of real property that is secured by a first mortgage on the property rather than by any federal agency
demand loan
: a loan that is subject to repayment upon demand of the lender
home equity loan
: a loan or line of credit secured by the equity in one's home

called also equity loan, home equity line, home equity line of credit

— see also qualified residence interest at interest sense 5
loan for consumption \ -​kən-​ˈsümp-​shən \
: a loan in which the borrower is obligated to return property of the same kind as that borrowed and consumed used chiefly in the civil law of Louisiana ; — compare bailment, deposit, loan for use in this entry
loan for use
: a loan in which one party lends personal property to another with the understanding that the borrower will return the same property at a future time without compensation for its use : commodatum used chiefly in the civil law of Louisiana ; — compare bailment, deposit, loan for consumption in this entry
participation loan
: a single loan in which two or more lenders participate
term loan
: a loan extended to a business with provisions for repayment according to a schedule of amortization and usually for a period of one to five years and sometimes fifteen years

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More from Merriam-Webster on loan

Thesaurus: All synonyms and antonyms for loan

Rhyming Dictionary: Words that rhyme with loan

Spanish Central: Translation of loan

Nglish: Translation of loan for Spanish Speakers

Britannica English: Translation of loan for Arabic Speakers

Britannica.com: Encyclopedia article about loan

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