Difference between Loan and Borrowing

What is the difference between Loan and Borrowing?

Loan as a noun is a sum of money or other valuables or consideration which an individual, group or other legal entity borrows from another individual, group or legal entity (the latter often being a financial institution) with the condition that it be returned or repaid at a later date (sometimes with interest). while Borrowing as a noun is an instance of borrowing something.

Loan

Part of speech: noun

Definition: A sum of money or other valuables or consideration which an individual, group or other legal entity borrows from another individual, group or legal entity (the latter often being a financial institution) with the condition that it be returned or repaid at a later date (sometimes with interest). The contract and array of legal and/or ethical obligations surrounding a loan. The permission to borrow any item.

Part of speech: verb

Definition: To lend. This usage is confined to the US (or perhaps parts thereof) and elsewhere is ungrammatical (loan being the noun, and lend the verb).

Borrowing

Part of speech: verb

Definition: To receive (something) from somebody temporarily, expecting to return it.

Part of speech: noun

Definition: An instance of borrowing something.A borrowed word, adopted from a foreign language; loanword.

We hope you now know whether to use Loan or Borrowing in your sentence.

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