1 loan | Definition of loan

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

The 28-year-old had been pursued by West Bromwich Albion during the summer transfer window after having a successful loan spell with the Baggies last season, scoring 24 goals. SI.com, "Steve Bruce Expresses Concern Over Dwight Gayle Injury & Gives Andy Carroll & Matt Richie Update," 30 Aug. 2019 There are also giant pandas currently on loan from China at Zoo Atlanta and the Memphis Zoo. Sophie Lewis, CBS News, "Could the trade war with China cost the U.S. its pandas?," 29 Aug. 2019 At Roots, some of the museum's artifacts will be on loan from a collector in California named Oran Z. Belgrave, who owned the Pan-African Black Facts & Wax Museum in Los Angeles, before it was closed in 2012. Savannah Eadens, The Courier-Journal, "Louisville will soon have a 'healing place' for black history at new museum on Main Street," 29 Aug. 2019 During a long homestand, the refrigerator in the kitchen and a small one in the living room, which is on loan from the Blue Jays, are stuffed. James Wagner, New York Times, "Abuela, Chef, Boss: Vladimir Guerrero Jr.’s Grandmother Feeds the Majors," 25 Aug. 2019 That included the Alaska Contemporary Art Bank, the source of hundreds of works by Alaska artists that are on loan to courthouses and public office buildings as far away as Washington, D.C. Tegan Hanlon, Anchorage Daily News, "Alaska groups scramble to rehire and restart programs after funding was vetoed, then restored," 24 Aug. 2019 What the evidence does show is that large-scale tax cuts lead to more debt, deficits, budget cuts and economic uncertainty as a greater share of financial resources is devoted to paying off interest on loans from our trading partners. Los Angeles Times, "Column: Trickle-down theory is a monstrous lie intended to justify the rich getting richer," 20 Aug. 2019 Cropper, 26, is on loan from the New England Revolution of Major League Soccer. Shawn Mcfarland, courant.com, "Hartford Athletic scores four times in second half to defeat Puerto Rican national team 5-1 in international friendly," 18 Aug. 2019 Prosper Kasim has four on the season, while JJ Williams and Brian Wright have become integral parts of the team on loan from MLS squads and have each scored three goals. Cheryl Wray, al, "Legion FC puts shutout streak on the line Saturday at home vs. Memphis," 15 Aug. 2019

Recent Examples on the Web: Verb

However, an abysmal debut campaign saw Bakayoko quickly loaned out to Milan, and there appears to be no way back for the underperforming Frenchman. SI.com, "Tiemoue Bakayoko Nearing Monaco Loan After Chelsea Finally Agree to Move," 27 Aug. 2019 An 85 percent scale version of a notional spaceplane, the X-40A flew one mission for the Air Force before being loaned to NASA for its program concept. Kyle Mizokami, Popular Mechanics, "Everything We Know About the Air Force's Secret X-37B Spaceplane," 30 July 2019 Amaya and Hague have been in Cincinnati all season while the others were loaned out. Pat Brennan, Cincinnati.com, "FC Cincinnati bet big on the MLS SuperDraft. So far, it's been a smart gamble.," 3 July 2019 The Northern Echo state that winger Jacob Murphy is the unlucky casualty, with the club ready to loan him out to one of Fulham, Derby County, Sheffield Wednesday or Huddersfield Town. SI.com, "Transfer Rumours: Rugani Snubs Wolves, Walker-Peters to Palace, Newcastle Fail for Lille Star & More," 7 Aug. 2019 The lunar sample lab has two side-by-side vaults: one for rocks still in straight-from-the-moon condition and a smaller vault for samples previously loaned out for study. Washington Post, "NASA to open moon rock samples sealed since Apollo missions," 26 June 2019 The lunar sample lab has two side-by-side vaults: one for rocks still in straight-from-the-moon condition and a smaller vault for samples previously loaned out for study. Marcia Dunn, The Denver Post, "NASA to open moon rock samples sealed since Apollo missions," 26 June 2019 The lunar sample lab has two side-by-side vaults: one for rocks still in straight-from-the-moon condition and a smaller vault for samples previously loaned out for study. Marcia Dunn, BostonGlobe.com, "NASA unseals moon rock samples for the first time since the Apollo missions," 26 June 2019 Kate was wearing one of her favorite tiaras, the Lover's Knot (also worn by Princess Diana), as well as sapphire earrings loaned by the Queen and originally belonging to the Queen Mother. Katherine J. Igoe, Marie Claire, "Kate Middleton Unexpectedly Reached Out to a Woman at the Banquet," 4 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.

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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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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