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)

Keep scrolling for more

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

Visit the Thesaurus for More 

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?
See More

Recent Examples on the Web: Noun

In 1983, Chrysler paid back its government loans, with interest, seven years early. Washington Post, "Lee Iacocca, engineer of Chrysler’s turnaround, dies at 94," 3 July 2019 In 1983, Chrysler paid back its government loans, with interest, seven years early. CBS News, "Lee Iacocca, creator of Ford Mustang and former CEO of Chrysler, has died at 94," 3 July 2019 In 1983, Chrysler paid back its government loans, with interest, seven years early. Julio Ojeda-zapata, Twin Cities, "Former Chrysler CEO Lee Iacocca has died at age 94," 2 July 2019 In 1983, Chrysler paid back its government loans, with interest, seven years early. Tom Krisher, chicagotribune.com, "Former Chrysler CEO Lee Iacocca, who became a folk hero for rescuing the company in the ’80s, dies at 94," 2 July 2019 Under Castro's plan, borrowers would not have to repay their loans until their income rose above 250% of the federal poverty line - about $64,000 for a family of four - after which it would be capped. Jeff Stein, Anchorage Daily News, "Sanders proposes canceling entire $1.6 trillion in US student loan debt, escalating Democratic policy battle," 24 June 2019 The 24-year-old defender joined the Rapids in May of this year on a loan deal from the Columbus Crew. Mark Goodman, The Denver Post, "Colorado Rapids defender Lalas Abubakar is going places, and he doesn’t seem to mind," 21 June 2019 Last June the fund uncoiled its biggest-ever loan: $50bn for Argentina. The Economist, "In Argentina, the IMF has been neither toxic nor triumphant," 21 June 2019 Her loans for the Art Institute of Phoenix total about $40,000. Rachel Leingang, azcentral, "Art Institute's former students were promised to get their debt erased. It's not happening," 19 June 2019

Recent Examples on the Web: Verb

The library has a telescope to loan for two days at a time. courant.com, "Community News For The Colchester Edition," 28 June 2019 La Liga, Spain’s top soccer league, recently signed a lucrative sponsorship deal to loan to top Spanish teams players from Saudi Arabia’s World Cup squad. New York Times, "The Brazen Bootlegging of a Multibillion-Dollar Sports Network," 9 May 2018 New Lenox Fire Station #2 was expected to reopen Wednesday after village trustees agreed to loan $450,000 to the area’s fire protection district. Susan Demar Lafferty, Daily Southtown, "New Lenox fire station reopens with village loan," 25 Apr. 2018 Steffen will sign with Manchester City this summer, but is being loaned out to Fortuna Dusseldorf in Germany. Tim Bielik, cleveland.com, "Gold Cup 2019: USMNT tries to get revenge against Trinidad and Tobago, and Panama faces Guyana in Cleveland doubleheader," 21 June 2019 Districts installed wireless internet on buses and loaned out hot spots. Larry Fenn, The Denver Post, "Homework gap: Millions of students lack internet at home," 10 June 2019 Districts installed wireless internet on buses and loaned out hot spots. Michael Melia, courant.com, "‘Homework gap’ shows millions of students, including those in Hartford’s North End, lack home internet," 10 June 2019 Districts installed wireless internet on buses and loaned out hot spots. NBC News, "'Homework gap' shows millions of students lack home internet," 10 June 2019 Kate chose a pair of earrings loaned from the Queen Mother's collection. Amy Mackelden, Harper's BAZAAR, "Kate Middleton Pays Tribute to the Queen Mother at the Trump State Banquet," 3 June 2019

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.

See More

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

Keep scrolling for more

Learn More about loan

Statistics for loan

Last Updated

10 Jul 2019

Look-up Popularity

Time Traveler for loan

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

See more words from the same century

Keep scrolling for more

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

Keep scrolling for more

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

Keep scrolling for more

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

What made you want to look up loan? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

something desired as essential

Get Word of the Day daily email!

Test Your Vocabulary

What's that Smell?! Quiz

  • wide eyed dog smelling rose
  • Someone who is hircine smells like a:
How Strong Is Your Vocabulary?

Test your vocabulary with our 10-question quiz!

TAKE THE QUIZ
Word Winder's CrossWinder

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!