Loan vs. Borrow — What's the Difference?
By Urooj Arif & Fiza Rafique — Updated on April 15, 2024
Loan involves giving something, typically money, temporarily to someone else, expecting repayment; borrow means to receive something on the same basis.
Difference Between Loan and Borrow
Table of Contents
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Key Differences
Loan is a noun or verb referring to the act of giving something to another party with the expectation of its return or repayment. Whereas borrow is always a verb, involving the action of receiving something from another party under similar conditions.
In a loan, the emphasis is often on the lender’s role, which involves temporarily transferring ownership of an item or money. On the other hand, borrow focuses on the borrower's perspective, highlighting their temporary usage of what is loaned.
Loans can be formalized through agreements or contracts that specify the terms, including duration and interest. Whereas borrowing can be as informal as taking a book from a friend, without any explicit agreement.
The term loan can also apply to situations involving tangible items, like tools or books, in addition to money. On the other hand, borrow generally applies to both tangible items and intangible resources like money or credit.
Loans often involve interest or fees, especially in financial contexts, reflecting the cost of borrowing money. Whereas borrow does not inherently include the concept of interest, focusing solely on the act of using another's resources.
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Comparison Chart
Part of Speech
Noun, Verb
Verb
Perspective
Lender’s involvement
Borrower’s involvement
Formality
Often formal
Can be informal
Application
Money, items
Money, items, resources
Associated Costs
May include interest/fees
No inherent costs
Compare with Definitions
Loan
An agreement where a sum of money is borrowed for a certain period.
He got a car loan from the bank.
Borrow
To adopt ideas or words from another source.
She borrowed the phrase from a famous poem.
Loan
A sum of money lent at interest.
She repaid the loan with interest after two years.
Borrow
To take something from someone temporarily.
Can I borrow your pen?
Loan
To give something to someone for a limited time, expecting it to be returned.
The library loans out books for three weeks.
Borrow
To take and use money from a person or bank under an agreement to pay it back later.
They decided to borrow money to renovate their home.
Loan
To make a temporary transfer of ownership.
They loaned their house to us for the summer.
Borrow
To temporarily use a possession of another.
Can I borrow your book to read tonight?
Loan
An act of lending something.
The loan of a ladder saved the day.
Borrow
To take and use something belonging to someone else with the intention of returning it.
He borrowed the car for the weekend.
Loan
In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that debt until it is repaid as well as to repay the principal amount borrowed.
Borrow
To obtain or receive (something) on loan with the promise or understanding of returning it or its equivalent.
Loan
An instance of lending
A bank that makes loans to small businesses.
Borrow
To adopt or use as one's own
I borrowed your good idea.
Loan
A sum of money that is lent, usually with an interest fee
Took out a loan to buy a car.
Repaid the loan over five years.
Borrow
In subtraction, to take a unit from the next larger denomination in the minuend so as to make a number larger than the number to be subtracted.
Loan
The agreement or contract specifying the terms and conditions of the repayment of such a sum.
Borrow
(Linguistics) To adopt (a word) from one language for use in another.
Loan
The repayment obligation associated with such an agreement
She couldn't afford the loan after losing her job.
Borrow
To borrow something.
Loan
The right to payment associated with such an agreement
A bank that buys consumer loans.
Borrow
(Linguistics) To adopt words from one language for use in another.
Loan
The state of being lent for temporary use
A painting on loan from another museum.
Borrow
To receive (something) from somebody temporarily, expecting to return it.
Loan
To lend (money or property).
Borrow
To receive money from a bank or other lender under the agreement that the lender will be paid back over time.
Loan
An act or instance of lending, an act or instance of granting something for temporary use.
Because of the loan that John made to me, I was able to pay my tuition for the upcoming semester.
Borrow
To adopt (an idea) as one's own.
To borrow the style, manner, or opinions of another
Loan
A sum of money or other property that a natural or legal person borrows from another with the condition that it be returned or repaid over time or at a later date (sometimes with interest).
All loans from the library, whether books or audio material, must be returned within two weeks.
He got a loan of five thousand pounds.
Borrow
(linguistics) To adopt a word from another language.
Loan
The contract and array of legal or ethical obligations surrounding a loan.
He made a payment on his loan.
Borrow
(arithmetic) In a subtraction, to deduct (one) from a digit of the minuend and add ten to the following digit, in order that the subtraction of a larger digit in the subtrahend from the digit in the minuend to which ten is added gives a positive result.
Loan
The permission to borrow any item.
Thank you for the loan of your lawn mower.
Borrow
To lend.
Loan
(Scotland) A lonnen.
Borrow
(ditransitive) To temporarily obtain (something) for (someone).
Loan
To lend (something) to (someone).
Borrow
To feign or counterfeit.
Loan
A loanin.
Borrow
(obsolete except in ballads) To secure the release of (someone) from prison.
Loan
The act of lending; a lending; permission to use; as, the loan of a book, money, services.
Borrow
(informal) To receive (something, usually of trifling value) from somebody, with little possibility of returning it.
Can I borrow a sheet of paper?
Loan
That which one lends or borrows, especially a sum of money lent at interest; as, he repaid the loan.
Borrow
(informal) To interrupt the current activity of (a person) and lead them away in order to speak with them, get their help, etc.
John, can I borrow you for a second? I need your help with the copier.
Loan
To lend; - sometimes with out.
By way of location or loaning them out.
Borrow
(golf) To adjust one's aim in order to compensate for the slope of the green.
Loan
The temporary provision of money (usually at interest)
Borrow
Deviation of the path of a rolling ball from a straight line; slope; slant.
This putt has a big left-to right borrow on it.
Loan
A word borrowed from another language; e.g. `blitz' is a German word borrowed into modern English
Borrow
A borrow pit.
Loan
Give temporarily; let have for a limited time;
I will lend you my car
Loan me some money
Borrow
(programming) In the Rust programming language, the situation where the ownership of a value is temporarily transferred to another region of code.
Borrow
(archaic) A ransom; a pledge or guarantee.
Borrow
(archaic) A surety; someone standing bail.
Borrow
To receive from another as a loan, with the implied or expressed intention of returning the identical article or its equivalent in kind; - the opposite of lend.
Borrow
To take (one or more) from the next higher denomination in order to add it to the next lower; - a term of subtraction when the figure of the subtrahend is larger than the corresponding one of the minuend.
Borrow
To copy or imitate; to adopt; as, to borrow the style, manner, or opinions of another.
Rites borrowed from the ancients.
It is not hard for any man, who hath a Bible in his hands, to borrow good words and holy sayings in abundance; but to make them his own is a work of grace only from above.
Borrow
To feign or counterfeit.
The borrowed majesty of England.
Borrow
To receive; to take; to derive.
Any drop thou borrowedst from thy mother.
Borrow
Something deposited as security; a pledge; a surety; a hostage.
Ye may retain as borrows my two priests.
Borrow
The act of borrowing.
Of your royal presence I'll adventureThe borrow of a week.
Borrow
Get temporarily;
May I borrow your lawn mower?
Borrow
Take up and practice as one's own
Common Curiosities
What is a loan?
A loan is something, typically money, that is given to someone else temporarily, with the expectation of being paid back, often with interest.
What is an example of borrowing that does not involve money?
Borrowing a book from a friend is an example where no money is involved.
Can "loan" be used as a verb?
Yes, "loan" can be used as a verb, meaning to give something on a temporary basis.
How do terms differ in informal settings?
In informal settings, borrowing can be as simple as borrowing a cup of sugar without a formal agreement, unlike most loans.
What does it mean to borrow?
To borrow means to receive something from someone temporarily with the intent to return it later.
Is borrowing always related to money?
No, borrowing can involve any item or resource, not just money.
Do loans always involve interest?
In many cases, especially with money, loans involve interest, but this can vary depending on the agreement.
Are loans legally binding?
Loans, especially those involving money, are often formalized by legal agreements.
What is a common scenario for using a loan?
Getting a mortgage to purchase a house is a common form of loan.
Can anything be borrowed?
Practically, many items can be borrowed as long as the owner agrees to lend them.
What kind of interest is associated with loans?
Interest on loans can be fixed or variable, depending on the terms of the agreement.
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Written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
Co-written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
