What does loan mean?
A loan is money or property made available to someone, normally in the understanding that it will be repaid, often with interest. The most familiar use is financial: people take out loans for a home, vehicle, education, or other major expense, while banks, governments, and other lenders offer them. The word can also refer to a temporary transfer of property, such as an item being loaned to a museum or individual. As a verb, 'loan' means to lend something, although 'lend' is often more natural in British English. The term carries no necessary implication of unfairness or hardship, though it can sound formal in everyday conversation and is especially common in financial and legal contexts. 'Loan' is also useful for recognizing the difference between the lender's action and the borrower's situation: one person loans or lends an asset, while another borrows or takes out a loan. Its vocabulary connections extend beyond finance: an expression or object introduced from another language is commonly called a loanword.
An amount of money or property lent to someone, typically to be repaid with interest; also, the arrangement or act of lending.
"They used the loan to pay for the renovation."
The plural 'loans' is standard. In financial contexts, the term may refer to a formal credit arrangement as well as the money received.
To lend money or property to someone, or to grant temporary use of something in exchange for repayment or its later return.
"The school loaned the students a laptop for the project."
The verb is widely used in American English and formal institutional contexts; 'lend' is often preferred in general British usage.
The standard plural of the noun is 'loans', used for multiple borrowing arrangements or amounts of borrowed money.
"The business has several loans outstanding."
The word 'loan' comes from Old Norse, but its English partner 'lend' is a Germanic cousin—proof that even money can have family drama.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does loan come from?
The noun 'loan' comes from Old Norse lān, meaning 'loan' or 'lending', and entered English through contact with Scandinavian speakers. It belongs to the same Germanic etymological family as Old English lænan, the ancestor of 'lend'. The related English verb 'loan' became especially established in American usage, while British English retained 'lend' as the usual everyday verb.
Related word forms
How loan is actually used
As a verb, 'loan' is especially common in American English and in business, finance, and institutional contexts. British speakers generally use 'lend' more often for the act of giving something to another person, while 'borrow' or 'take out a loan' describes the recipient's perspective.
Easily confused with loan
To lend something is to give it to someone temporarily, while to borrow or take out a loan is to receive and use it as a borrower.
Loan refers to borrowed money or property or the act of providing it, whereas lone means solitary or without companions.