What's the Difference Between 'Lend' and 'Loan'?
In this blog post we look at when to use lend and when to use loan.
'Lend' or 'Loan'?
"Lend" and "loan" are two words that can be used interchangeably, but their main definitions have distinct meanings and uses.
Both words refer to the act of providing something, usually money, to someone else with the expectation that it will be returned. Although they are related words, they have different grammatical functions.
"Lend" is a verb that means to temporarily give something to someone else with the expectation that it will be returned.
For example, one might say "I will lend you my car for the weekend," or "I lent my friend some money to help him pay his rent."
The act of lending implies a certain level of trust and goodwill between the lender and the borrower, as the lender is entrusting something valuable to the borrower.
On the other hand, "loan" is mainly used as a noun which refers to the thing that is being lent or the act of lending.
For example, one might say "I took out a loan to buy a car," or "She repaid her loan on time."
A loan is an agreement between a lender and a borrower, in which the borrower is required to repay the loan amount with interest. The lender is the person or people taking a financial risk by lending the money.
The confusion arises from the fact that "loan" can also be used as a verb with the same meaning as “lend”, although it is less commonly used than "lend".
The verb form of "loan" expresses exactly the same meaning as "lend", for example "The bank loaned me the money for the house."
However, “loan” is much less frequently used as a verb than “lend” and it is not considered to be as grammatically sound as “lend”. For formal writing you should use the verb “lend” rather than “loan”.
In conclusion, "lend" and "loan" are two words that are closely related in meaning and usage, but have distinct meanings and grammatical functions. While "lend" is a verb and "loan" is a noun, "loan" can also be used as a verb, but it is less common.
Understanding the specific definitions and uses of these words can help to avoid confusion in communication.
Here are some example sentences that illustrate the difference between "loan" and "lend," with "loan" used as both a noun and a verb:
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As a verb, "lend" means to give something temporarily to someone else with the expectation that it will be returned:
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"I will lend you my car for the weekend."
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"I lent my friend some money to help him pay his rent."
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As a noun, "loan" refers to the act of lending or the thing that is lent:
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"I took out a loan to buy a car."
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"She repaid her loan on time."
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As a verb, "loan" means the same as "lend", but it's less common in usage
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"The bank loaned me the money for the house."
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"I will loan you my book if you promise to return it to me."
Examples of Lend in a Sentence
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I'm going to lend you my car for the weekend.
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She lent me her book to read.
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I'm going to lend you some money to help you pay your bills.
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He lent his friend his camera for the weekend.
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I'm going to lend you my bike so you can go for a ride.
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She lent her sister her dress for the prom.
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I'm going to lend you my tools so you can fix your car.
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He lent his neighbor his lawn mower for the summer.
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I'm going to lend you my tablet so you can watch a movie.
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She lent her friend her guitar for the weekend.
Examples of Loan in a Sentence
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I need to take out a loan to pay for my education. (noun)
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I just got approved for a loan to buy a new house. (noun)
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I need to take out a loan to start my business. (noun)
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I just got approved for a loan to buy a new car. (noun)
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He will have to take out a loan to pay for the wedding. (noun)
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I just got approved for a loan to buy a new boat. (noun)
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He loaned the money to his friend for the business. (verb)
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The bank will loan you the money for the college. (verb)
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He loaned his employee the money for the emergency (verb)
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The bank will loan you the money for the equipment (verb)
