loan

Definition

An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk).

Use loan in a sentence

Jerry took out a student loan to cover his college expenses, with hopes to pay it off after he graduates.

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In order to pay for my college education I had to take out a very large student loan for which I will be paying off for 30 years.

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The student was able to finance his undergraduate degree with the help of a federal loan.

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