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

advance, lend

Antonyms: Verb

borrow

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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

Successful applicants can receive federal grants, loans, or work study funds from the U.S. Department of Education, which pays out more than $150 billion in aid annually. Lincoln Anthony Blades, Teen Vogue, "What to Know About Free Application for Federal Student Aid (FAFSA)," 1 Oct. 2018 The data group helped develop an application that allows traders to analyze the risk of a loan without having to do deeper analysis manually. Sara Castellanos, WSJ, "Morgan Stanley Center of Excellence Readies Bank for AI’s Data Demands," 22 Apr. 2019 With a $100,000 loan from his father, Giannulli grew his men's streetwear business, eventually going public on the New York Stock Exchange in 1996, after which the company's valuation reached $275 million. Chloe Foussianes, Town & Country, "How Lori Loughlin and Her Husband Mossimo Giannulli Became Involved in the College Admissions Scandal," 13 Mar. 2019 According to The Guardian, Agustin Gomez took out a large loan in order to make the trip north to the U.S. Kaylen Ralph, Teen Vogue, "8-Year-Old Felipe Gomez Alonzo's Family and Community Is Mourning His Death in Border Patrol Custody," 2 Jan. 2019 Many organizations change lives by forgoing a donation in favor of a loan. Linda Davis Taylor, SELF, "Beyond Giving Tuesday: How to Make a Giving Plan and Why You Need One," 26 Nov. 2018 Our expansion has been largely self-financed as well as backed with a personal loan from a friend. BostonGlobe.com, "Her circus business embraces the unconventional," 14 July 2018 According to estimates, a 25-year loan to pay for construction would cost Casselberry about $450,000 annual. Martin E. Comas, OrlandoSentinel.com, "Casselberry moves forward with relocating police station, which carries $7M price tag," 3 July 2018 Additional money comes from a loan from a Mexican bank. Phillip Molnar, sandiegouniontribune.com, "Building up, instead of tearing down, in Tijuana," 2 July 2018

Recent Examples on the Web: Verb

Depending on an early version of crowd-sourcing to find capital for his operation, Haldeman-Julius employed a forerunner of GoFundMe, asking his readers to loan him money for expansion. Danny Heitman, WSJ, "‘Publisher for the Masses’ Review: Culture Served in a Blue Wrapper," 19 July 2018 The side-by-side is still in the shop, Smith said, but another fan has loaned the team a 4-wheeler to use in the interim. Beth Bragg, Anchorage Daily News, "Alaska’s boys of summer are back, and they begin playing baseball Tuesday," 5 June 2018 Authorities say the 58-year-old Jackson resident persuaded investors to loan him money, promising interest rates of 12 percent to 15 percent a year and repayment over 12 to 15 months. Washington Post, "Mississippi man pleads guilty in timber fraud scheme," 9 May 2018 Kevin Curtis has loaned his 2006 Chevrolet Impala to Jess Legendre, 31, the friend who was behind the wheel when the car crashed. Michelle Hunter, NOLA.com, "Seized 'heroin' turns out to be grandfather's ashes: report," 25 Apr. 2018 Pine Bush is our contact for all things Kubota, and the company was kind enough to loan us one of its salesmen, Dave Conero, to show us the ropes with this machine. Roy Berendsohn, Popular Mechanics, "The Year of the Tractor," 7 May 2016 Also on show is the Greville Emerald Kokoshnik Tiara which Eugenie was loaned by the Queen for the day and is on display for the first time. Victoria Murphy, Town & Country, "Princess Eugenie Reveals That Her Wedding Reception Gown Was Inspired By Grace Kelly," 28 Feb. 2019 Politicians like Steve Scalise claim that people would be unable to protect themselves from domestic violence and considered a criminal if someone loaned them their gun. Rachel Epstein, Marie Claire, "How to Get the H.R. 8 Universal Background Checks Bill Passed in the Senate," 28 Feb. 2019 If your carrier doesn't loan it to you for free, femtocells will set you back anywhere from $50 to $250, depending on the brand and the amount of data. Kim Komando, Fox News, "3 smart ways to boost cell signals inside your home," 19 Aug. 2018

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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Statistics for loan

Last Updated

15 May 2019

Look-up Popularity

Time Traveler for loan

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

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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

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

Rhyming Dictionary: Words that rhyme with loan

Thesaurus: All synonyms and antonyms for 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

Comments on loan

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