Loan Meaning and Definition
Loan
Pronunciation
/loʊn/
Part of Speech
Noun
Definition
A financial transaction where one party provides money or goods to another party in exchange for future repayment, often with interest.
Examples
- The bank offered a loan to the small business owner to help her expand her operations.
- A student might take out a loan to pay for their education.
Synonyms
- Credit
- Indebtedness
Antonyms
- Gift
- Grant
Additional Information
Loans can be secured or unsecured, and can have varying interest rates and repayment terms. Borrowers must carefully consider the terms of a loan before accepting it.
Loans are an essential part of the global economy, allowing individuals and businesses to access funds for various purposes, such as financing major purchases or covering unexpected expenses.
Etymology
The word “loan” comes from the Old English word “lænan”, which means “to lend”.
Usage Notes
When referring to a loan, it’s essential to use the correct terminology, such as “mortgage loan” or “personal loan”, to convey the specific type of loan being discussed.
Cultural References
The concept of loans has been depicted in various forms of media, such as films and literature, often highlighting the importance of responsible borrowing and repayment.
Idiomatic Expressions or Phrases
“Loan shark” is a common idiom used to describe an unscrupulous lender who charges exorbitant interest rates.
Related Words or Phrases
Debt, credit, interest, repayment, borrower, lender
Collocations
Loan and interest rate, loan and repayment, loan and borrower, loan and lender
Frequency of Use
The word “loan” is commonly used in financial and economic contexts, making it a vital term in everyday language.
Common Misspellings
loin, lone, loneo