loan
word
Definition
Money that someone borrows from a bank, company, or person and agrees to pay back later, usually with extra money called interest. It can also mean the act of lending something for a period of time.
Usage & Nuances
Most commonly, 'loan' is a noun: 'a bank loan', 'student loan', 'car loan'. In everyday English, the verb is more often 'lend' than 'loan' in British English, while American English sometimes uses 'loan' as a verb in formal or business contexts. Common collocations: 'take out a loan', 'pay back a loan', 'loan application', 'interest rate'.
Example Sentences
She got a loan from the bank to buy a car.
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I need a small loan to fix my roof.
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He is paying back his student loan every month.
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We took out a loan to renovate the kitchen, and now we're watching every dollar.
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My loan application was approved faster than I expected.
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If the interest rate drops, we might refinance the loan.
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