loan

noun
\ ˈlōn \

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 \ 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

The earnings beats from JPMorgan and Citigroup reflected continued growth in loans and an ongoing focus on controlling expenses. Emily Glazer, WSJ, "JPMorgan, Citigroup Report Higher Profit, Boosted by Stronger Economy," 13 July 2018 The collectors hounded consumers named in the fake loans so much that some paid them off. Mark Davis And Tony Rizzo, kansascity, "Joel Tucker indicted in fake payday loan scheme, accused of lying to bankruptcy judge," 29 June 2018 Becerra said in a statement that Navient services about $300 billion in federal and private student loans for 12 million borrowers, about 1.5 million of whom live in California. Samantha Masunaga, latimes.com, "California Atty. Gen. Xavier Becerra to file lawsuit against student loan servicing firm Navient," 29 June 2018 Students of defunct Corinthian Colleges to get millions in loan... Nanette Asimov, SFChronicle.com, "Student loan servicer cheats borrowers, California attorney general says," 28 June 2018 In the end, Greece got some $280 billion in loans, and Ireland, Portugal, Spain, and Cyprus also received financial rescues in exchange for deeply unpopular and painful spending cuts. Alan Crawford, Bloomberg.com, "As Merkel’s Power Drains, the Threat to Europe Grows," 27 June 2018 Hagedorn reported nearly $108,000 in loans, compared to about $80,000 for Nonini. William L. Spence, idahostatesman, "Idaho governor candidates spent $11 million trying to get your votes," 19 June 2018 Since then he's extended billions of dollars in loans from his hedge fund to Sears and Kmart. Charisse Jones, USA TODAY, "Sears, Kmart stores ailing as CEO Eddie Lampert's hedge fund gets hundreds of millions," 18 June 2018 Bankruptcy court documents show the two medical centers marred by financial pressure, owing creditors at least $13.1 million in unpaid loans. Lily Altavena, azcentral, "Bankruptcy forces abrupt closure of Gilbert Hospital, Florence Hospital at Anthem," 15 June 2018

Recent Examples on the Web: Verb

John Fitzsimmons, who is a member of the 501st Midwest Garrison, was kind enough to loan us 12 of his original trading cards. Jessi Virtusio, Daily Southtown, "Star Wars Day in Joliet offers much fun for fandom," 18 May 2018 Generally, people with legal claims against Weinstein Co. rank lower on the bankruptcy payment priority ladder than banks that loaned the studio money on a secured basis. Jonathan Randles, WSJ, "Judge Approves $310 Million Sale of Weinstein Co. Assets to Lantern Capital," 8 May 2018 Munn had read ahead of what items were waiting for her inside and was looking forward to inspecting items that the Vatican rarely loans out but did for the gala. Fox News, "The Latest: Olivia Munn explains what inspired her Met dress," 7 May 2018 The painting was confirmed authentic by Musée d’Orsay, the museum that originally loaned it to Cantini. Alex Horton, Philly.com, "French customs stumbled upon a stolen $1 million painting in an unlikely place," 24 Feb. 2018 The most successful players who have been loaned out by Chelsea are those who have gone to other teams in England. SI.com, "England's World Cup Success Demonstrates the Importance of the Loan System to Player Development," 12 July 2018 Of the loan to Sinclair, Essigs, of the Arizona School Association of Business Officials, noted that state law prohibits a traditional public school district from loaning money to employees. Craig Harris, azcentral, "Arizona charter school founder makes millions building his own schools," 11 July 2018 After the gunboat was retired in 1909 and broken down in Bremerton, the guns were loaned by the Navy to United Spanish War Veterans of Seattle to be placed in the War Garden. Christine Clarridge, The Seattle Times, "Seattle war memorial to lose battle guns, drawing criticism even as city cites safety, costs," 18 June 2018 The family of his former father-in-law, who had loaned Kramer the money to buy those properties, took him to court in Switzerland in 2012 for failure to repay and won a $200 million judgment. Rene Rodriguez, miamiherald, "Former home of South Beach investor and playboy Thomas Kramer sells for $33 million," 12 June 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

13th century, in the meaning defined above

History and Etymology for loan

Noun

Middle English lon, from Old Norse lān; akin to Old English lǣn loan, lēon to lend, Latin linquere to leave, Greek leipein

Verb

see loan entry 1

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Statistics for loan

Last Updated

18 Sep 2018

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

: 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

: to give (money) to (someone) who agrees to pay it back in the future

loan

noun
\ ˈlōn \

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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Comments on loan

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to deposit or conceal in a hiding place

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