Loan: meaning, definitions and examples

A loan refers to money borrowed that is expected to be paid back with interest. It's a broad term used for both personal and business contexts.

• She took out a loan to buy a new car
• The company secured a loan to expand its operations

Credit generally refers to the ability to borrow money or access goods or services with the understanding that you'll pay later. Common in banking and retail settings.

• She has a good credit score and was easily approved for a new credit card
• The store extended credit to their regular customers

An advance is a payment made ahead of scheduled time, often used in work or literary contexts when payment is given before services are completed.

• He received an advance on his salary to cover the expenses
• The author got an advance from the publisher for her new book

A mortgage is a specific type of loan used for purchasing property, typically repaid over several years with the property serving as collateral.

• They secured a mortgage to buy their dream house
• The bank offers competitive mortgage rates

Debt is an amount of money borrowed by one party from another. It often has a negative connotation as it implies an obligation to repay and might indicate financial difficulty.

• He is struggling to pay off his student debt
• The nation's debt level has reached an all-time high

Used to describe a sum of money that is borrowed and expected to be paid back with interest. Usually formal, and often used in banking and financial contexts.

• He took out a loan to buy a new car.
• The bank approved her loan application.

Used to describe the act of temporarily giving something, often money, with the expectation that it will be returned. More commonly used in everyday situations.

• Can you lend me your book?
• She lent me $50 until payday.

Refers to a sum of money given before it is earned, often in the context of salary or royalties. It can also be used in more general terms to mean giving something ahead of time.

• She received an advance on her salary.
• The author got an advance for his new book.

A phrase used to indicate the act of providing a loan. It is more conversational and often used between individuals or in informal situations.

• Can you give me a loan till next month?
• My friend gave me a loan to start my business.